What information about the Kidokinetics franchisee's business does the franchisor have the right to disclose to a prospective transferee?

According to Kidokinetics's 2024 Franchise Disclosure Document, when a franchisee seeks to transfer their business, Kidokinetics has the right to disclose specific information to potential buyers. Kidokinetics can share revenue reports and other financial information about the franchisee's Kidokinetics business, but only the information that the franchisee has already provided to Kidokinetics.

This means a prospective buyer will gain insight into the financial performance of the existing franchise, which can help them assess the potential investment. However, it's important to note that Kidokinetics is not liable for any representations made outside of the Franchise Disclosure Document itself. Therefore, a potential buyer should rely on the official FDD and the financial information provided by the franchisee to Kidokinetics, rather than any other claims or promises.

This clause protects Kidokinetics from liability for any misrepresentations made by the franchisee to the potential buyer. It also ensures that Kidokinetics can provide relevant financial data to help a prospective buyer make an informed decision, while controlling what information is shared. Franchisees should be aware that their financial data shared with Kidokinetics may be disclosed to potential buyers if they decide to sell their franchise.