How long does the Franchisor have to approve or disapprove of a replacement Kidokinetics Manager?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
If the Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee will promptly notify Franchisor and request approval for a replacement within 30 days after the Manager ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining all certifications required by Franchisor).
Franchisor will approve or disapprove of the replacement Manager within 30 days.
Until such replacement is designated, Franchisee will provide for interim management of the Kidokinetics Business, who will act in accordance with the terms of this Agreement.
Any failure to comply with the requirements of this Section is deemed an event of default under this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee needs to replace their Kidokinetics Manager, they must notify Kidokinetics and request approval for a replacement within 30 days of the manager's departure. The replacement manager must meet the same qualifications as the original, including completing all required training and certifications.
Kidokinetics has 30 days to either approve or disapprove of the proposed replacement manager. During the time that the manager position is vacant, the franchisee is responsible for providing interim management to ensure the Kidokinetics business continues to operate according to the franchise agreement.
Failure to comply with these requirements regarding manager replacement is considered a default under the franchise agreement, which could lead to penalties or termination of the franchise. Kidokinetics also has the option to provide interim management support, but the franchisee would then be responsible for paying an Interim Management Fee. This fee is 10% of gross sales earned during the interim management period, plus the subsequent three weeks, in addition to regular fees like royalty and brand development fund contributions, as well as any travel, lodging, meals, and other expenses incurred by Kidokinetics.