What does the new Kidokinetics franchisee represent regarding the Franchise Disclosure Document?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ed for the operation of the Kidokinetics Business;
- 15.3.13. Franchisee must request that Franchisor provide the prospective transferee with Franchisor's current form of franchise disclosure document, and Franchisor will not be liable for any representations not included in the franchise disclosure document;
- 15.3.14. Franchisor's approval of the transfer will not constitute a waiver of any claims Franchisor may have against the transferring party;
- 15.3.15. Franchisor will have the right to disclose to any prospective transferee such revenue reports and other financial information concerning Franchisee and Franchisee's Kidokinetics Business as Franchisee has supplied Franchisor hereunder; and
- 15.3.16. In any event, Franchisor may withhold or condition Franchisor's consent to any transfer as Franchisor deems appropriate based on the circumstances of the transfer or otherwise.
- 15.4. Transfer Fee.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, a prospective franchisee, or transferee, is entitled to receive the current form of the Franchise Disclosure Document (FDD). Kidokinetics will not be held liable for any representations that are not included in the FDD. This means that any claims or promises made outside of the official FDD document are not binding on Kidokinetics. The franchisee is responsible for requesting the FDD from Kidokinetics to ensure they have the most up-to-date information.
Kidokinetics's approval of a transfer does not constitute a warranty of the transferee's success or the soundness of their decision to purchase the franchise. This clarifies that while Kidokinetics must approve the transfer, this approval is not an endorsement of the new franchisee's business acumen or a guarantee of profitability. The new franchisee bears the responsibility for their own success. The previous franchisee must provide Kidokinetics with all proposed transfer documents for review at least 30 days before closing the transfer.
In the event of a transfer of a Kidokinetics franchise, the franchisee must request that Kidokinetics provide the prospective transferee with the current form of the franchise disclosure document. This ensures that the potential new franchisee has access to the most up-to-date information about the Kidokinetics franchise system. Kidokinetics will not be liable for any representations not included in the franchise disclosure document, emphasizing the importance of relying on the official FDD for accurate information. This protects Kidokinetics from claims based on information outside the FDD.
These stipulations are typical in franchise agreements to ensure transparency and protect both the franchisor and franchisee. The prospective Kidokinetics franchisee should carefully review the FDD and seek professional advice to fully understand the terms and conditions of the franchise agreement before making a final decision.