In Michigan, can Kidokinetics refuse a transfer if the proposed transferee is unwilling to comply with all lawful obligations?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
tion be conducted outside the State of Michigan. This shall not preclude you from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
- (g) A provision which permits us to refuse to permit a transfer of ownership of a Franchise, except for good cause. This subdivision does not prevent us from exercising a right of first refusal to purchase the Franchise.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Michigan law addresses the franchisor's ability to refuse a franchise transfer. Specifically, Kidokinetics is permitted to refuse a transfer of ownership if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations. This provision aims to ensure that any new franchisee taking over an existing Kidokinetics location is committed to adhering to all legal and contractual requirements.
This stipulation protects Kidokinetics by ensuring that transferees are legally bound to uphold the franchise agreement and other obligations. It also provides a degree of assurance to other franchisees within the Kidokinetics system that new owners will operate responsibly and in compliance with the law.
For a prospective franchisee in Michigan, this means that if they plan to sell their Kidokinetics franchise in the future, the potential buyer must be willing to commit to all legal and contractual obligations. Failure to secure this commitment could result in Kidokinetics blocking the transfer. It is important for franchisees to understand this provision and ensure any potential buyers are fully aware of and willing to accept these obligations.