In Michigan, what must a Kidokinetics franchisee do to avoid Kidokinetics acquiring the assets of the franchise due to a breach?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- (h) A provision that requires you to resell to us items that are not uniquely identified with us. This subdivision does not prohibit a provision that grants to us a right of first refusal to purchase the assets of a Franchise on the same terms and conditions as a bona fide third party willing and able to purchase those assets, nor does this subdivision prohibit a provision that grants us the right to acquire the assets of a Franchise for the market or appraised value of such assets if you have breached the lawful provisions of the Franchise Agreement and have failed to cure the breach in the manner provided in subdivision (c).
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, Michigan franchisees can avoid Kidokinetics acquiring their assets due to a breach of the franchise agreement by curing the breach in the manner provided in subdivision (c). The specific details of subdivision (c) are not included in the provided documentation.
This means that if a Kidokinetics franchisee in Michigan violates the terms of their franchise agreement, they have a chance to correct the issue and prevent Kidokinetics from taking over their assets. This protection is particularly important because it ensures that franchisees are not immediately penalized for minor or unintentional breaches, but instead have an opportunity to rectify the situation.
It is important to note that this protection does not apply if the franchisee fails to cure the breach as specified in the franchise agreement. Therefore, prospective Kidokinetics franchisees in Michigan should carefully review the franchise agreement to understand what constitutes a breach and what steps they must take to cure it in order to protect their investment. Franchisees should pay close attention to the definition of "breach" within the agreement, as well as the specific procedures and timelines for curing any such breach.
Because the specific details of subdivision (c) are not included in the provided documentation, prospective franchisees should seek clarification from Kidokinetics regarding the definition of breach and the specific steps required to cure a breach under the Franchise Agreement. Understanding these terms is crucial for protecting their investment and maintaining a successful franchise operation.