How many default notices in a 12-month period can a Kidokinetics franchisee receive before it constitutes grounds for termination?

Based on the 2024 Kidokinetics Franchise Disclosure Document, the number of default notices a franchisee can receive within a 12-month period before it constitutes grounds for termination is not explicitly stated. However, the FDD does outline various defaults that can lead to termination, both curable and non-curable.

The Kidokinetics franchise agreement can be terminated if a franchisee fails to comply with the obligations outlined in the agreement, or if the franchisee defaults under any other agreement with Kidokinetics or its affiliates. The specific defaults are described throughout the Franchise Agreement, which the FDD advises prospective franchisees to read carefully.

The FDD specifies cure periods for certain defaults. For instance, a franchisee has five days to cure non-payments and 15 days to cure other defaults such as failure to maintain prescribed hours, supervise operations, maintain quality controls, or obtain required licenses. Other defaults, such as insolvency or bankruptcy, result in automatic termination without notice. The FDD also states that understating Gross Sales by 3% at any time or understating Gross Sales by any amount three or more times can lead to termination. Because the number of default notices is not specified, it is important for a prospective franchisee to discuss this with Kidokinetics to fully understand the circumstances that could lead to termination.