Has any party been convicted of a felony or pleaded nolo contendere to a felony charge related to Kidokinetics?
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 disclosure is made regarding felonies. With the exception of what is stated above in Item 3, no party, including the franchisor, its predecessor, individuals identified in Item 2, or any affiliate offering franchises under the Kidokinetics trademark, has been convicted of a felony or pleaded nolo contendere to a felony charge. This also applies to misdemeanor charges or civil actions related to franchise, antifraud, or securities law violations, fraud, embezzlement, fraudulent conversion or misappropriation of property, or unfair or deceptive practices within the 10-year period before the franchise application.
Additionally, no party is subject to an injunctive or restrictive order or decree related to the franchise, or under Federal, State or Canadian franchise, securities, antitrust, trade regulation, or trade practice law. This includes orders from national securities associations or exchanges, or any other business activity resulting from actions by a public agency or department, such as actions affecting a real estate broker or sales agent license.
In practical terms, this statement assures potential Kidokinetics franchisees that the key figures and the company itself have a clean legal record concerning serious legal and financial misconduct. This reduces the risk of reputational damage or instability stemming from the franchisor's past actions. However, it is important to note the exception "With the exception of what is stated above," meaning there may be some disclosures made elsewhere in Item 3 of the FDD, which a prospective franchisee should carefully review.