In New York, what constitutes 'routine litigation incidental to the business' for Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
REVAIL UPON A PROSPECTIVE FRANCHISEE TO ACCEPT TERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
- The following is added at the end of Item 3:
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
The 2024 Kidokinetics Franchise Disclosure Document (FDD) does not define what constitutes 'routine litigation incidental to the business' in New York. However, the FDD does state that no party has pending actions, other than routine litigation incidental to the business, which are significant in the context of the number of franchisees and the size, nature, or financial condition of the franchise system or its business operations. This clause is part of a broader statement regarding administrative, criminal, or civil actions against the franchisor, its predecessors, or affiliates.
Without a clear definition, prospective Kidokinetics franchisees in New York should seek clarification from the franchisor regarding what types of legal actions they consider 'routine litigation incidental to the business.' This is important to understand the scope of potential legal issues that the franchisor may face and how they might impact the franchise system.
Understanding the nature of potential litigation is crucial for assessing the risks associated with investing in a Kidokinetics franchise. While 'routine litigation' is considered normal in any business, its potential impact can vary. Therefore, prospective franchisees should engage in thorough due diligence and consult with legal counsel to fully understand their rights and obligations under New York law.