Does Kidokinetics need the franchisee's permission to assign the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
If Franchisor assigns its rights in this Agreement, nothing requires Franchisor to remain in the youth fitness business, or to offer or sell any products or services to Franchisee.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics does not need the franchisee's permission to assign its rights in the Franchise Agreement. The document states that if Kidokinetics assigns its rights, it is not required to remain in the youth fitness business or offer any products or services to the franchisee.
However, franchisees are restricted in their ability to transfer their rights and duties under the Franchise Agreement. The agreement is personal to the franchisee, and Kidokinetics relies on the franchisee's character, skills, business ability, and financial capacity. Therefore, franchisees must obtain Kidokinetics's prior written approval before making any transfer, which Kidokinetics states will not be unreasonably withheld.
This means that while Kidokinetics has the freedom to assign the agreement without franchisee consent, franchisees face restrictions and require franchisor approval for any transfer of their own rights and obligations. This is a fairly standard arrangement in franchising, where the franchisor maintains control over the brand and the selection of franchisees, while allowing themselves flexibility in business operations.