In New York, has Kidokinetics been convicted of a felony within the last 10 years?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD 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. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices or comparable civil or misdemeanor allegations.
- B. No such 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.
- C. No such party has been convicted of a felony or pleaded nolo contendere to a felony charge, or within the 10-year period immediately preceding the application for registration, has been convicted of or pleaded nolo contendere to a misdemeanor charge or has been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations.
- D. No such party is subject to a currently effective injunctive or restrictive order or decree relating to the franchise, or under a Federal, State or Canadian franchise, securities, antitrust, trade regulation, or trade practice law, resulting from a concluded or pending action or proceeding brought by a public agency; or is subject to any currently effective order of any national securities association or national securities exchange, as defined in the Securities and Exchange Act of 1934, suspending or expelling such person from membership in such association or exchange; or is subject to a currently effective injunctive or restrictive order relating to any other business activity as a result of an action brought by a public agency or department, including, without limitation, actions affecting a license as a real estate broker or sales agent.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, the following applies to Kidokinetics, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the Kidokinetics principal trademark. Kidokinetics has not been convicted of a felony or pleaded nolo contendere to a felony charge, or within the 10-year period immediately preceding the application for registration, been convicted of or pleaded nolo contendere to a misdemeanor charge or been the subject of a civil action alleging: violation of a franchise, antifraud, or securities law; fraud; embezzlement; fraudulent conversion or misappropriation of property; or unfair or deceptive practices or comparable allegations. This statement applies to all states, including New York.
This disclosure is crucial for prospective franchisees as it offers insight into the legal and ethical standing of Kidokinetics and its leadership. A history of felonies, misdemeanors, or civil actions related to fraud or unfair practices could indicate potential risks in investing in the franchise. The absence of such issues, as indicated in the FDD, suggests a more stable and trustworthy franchise opportunity.
It is important to note that this disclosure is limited to the specific entities and individuals mentioned (Kidokinetics, its predecessors, certain identified persons, and affiliates). It does not cover the backgrounds of all employees or other individuals associated with the franchise system. While the FDD indicates no convictions or pending actions of concern, a prospective franchisee may still wish to conduct their own due diligence, including background checks on key personnel, to gain a more comprehensive understanding of the risks involved.