What level of effort is required from a natural person franchisee to operate the Kidokinetics Business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ISEE'S REPRESENTATIONS, WARRANTIES AND COVENANTS
- 10.1. Best Efforts. Franchisee, if a natural person, covenants and agrees that he or she will devote his or her full-time and make all commercially reasonable efforts to operate the Kidokinetics Business so as to achieve optimum sales. If Franchisee is an entity, each of Franchisee's Principals covenants and agrees to make all commercially reasonable efforts to operate the Kidokinetics Business so as to achieve optimum sales.
- 10.2. Corporate Representations. If Franchisee is a corporation, partnership, limited liability company, or other legal entity, Franchisee and each Principal represent, warrant and covenant that:
- 10.2.1. Franchisee is duly organized and validly existing under the state law of its formation;
- 10.2.2. Franchisee is duly qualified and is authorized to do business in the jurisdiction of the Kidokinetics Business Location and the Territory;
- 10.2.3. Franchisee's organizational documents will, at all times, provide that the activities of Franchisee are confined exclusively to the operation of the Franchised Business granted herein, unless otherwise consented to in writing by Franchisor, which consent may be withheld by Franchisor in Franchisor's sole discretion;
- 10.2.4. The execution of this Agreement and the consummation of the transactions contemplated in this Agreement are within Franchisee's power and have been duly authorized by Franchisee;
- 10.2.5.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee who is a natural person must devote their full-time and make all commercially reasonable efforts to operate the Kidokinetics business to achieve optimum sales. This indicates that Kidokinetics expects a significant commitment of time and energy from its franchisees. If the franchisee is an entity, each of the franchisee's principals must also make all commercially reasonable efforts to operate the Kidokinetics Business to achieve optimum sales.
Kidokinetics allows for the delegation of day-to-day operations to a manager, but only with the franchisor's approval. The manager must meet Kidokinetics's standards and devote their full time and best efforts to the business, and cannot engage in any other business activity without the franchisor's consent. If a manager is appointed, a principal of the franchisee must still devote at least 20 hours of work per month to the operation of the franchised business.
These requirements ensure that the Kidokinetics business is actively managed, either by the franchisee directly or by a qualified manager with oversight from the franchisee. This structure aims to maintain quality and consistency across all franchise locations, aligning with common franchise practices where the franchisor sets standards for operational involvement.