Who makes the final decision regarding a Kidokinetics franchisee's request for exemption from Cooperative membership?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may grant to Franchisee, in its sole discretion, an exemption for any length of time from the requirement of membership in a Cooperative, upon written request from Franchisee stating reasons supporting such exemption.
Franchisor's decision concerning such request for exemption will be final.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor has the sole discretion to grant or deny a franchisee's request for exemption from mandatory membership in a regional advertising and promotional cooperative. The franchisee must submit a written request to Kidokinetics, explaining the reasons for seeking an exemption. Kidokinetics's decision on this request is final.
This means that while franchisees can request an exemption from participating in a Cooperative, Kidokinetics ultimately decides whether to grant the exemption. This gives Kidokinetics significant control over franchisee participation in regional advertising and promotional efforts. Franchisees need to provide a well-justified reason for their exemption request, but there is no guarantee it will be approved.
This level of control is not uncommon in franchising, as franchisors often want to ensure consistent branding and marketing efforts across all locations. However, it's important for prospective Kidokinetics franchisees to understand that they may be required to participate in a Cooperative and contribute to its costs, even if they believe it's not in their best interest. Franchisees should carefully consider the potential costs and benefits of Cooperative membership before investing in a Kidokinetics franchise.