Is any party 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 related to Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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:
- 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, with the stated exceptions, no party 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 actions affecting a license as a real estate broker or sales agent. This applies to the franchisor, its predecessor, individuals identified in Item 2, or an affiliate offering franchises under the Kidokinetics principal trademark.
Specifically, Item 23 clarifies that no such party is subject to any currently effective injunctive or restrictive order 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. Furthermore, there are no currently effective orders from any national securities association or national securities exchange suspending or expelling such person from membership.
This essentially means that Kidokinetics assures potential franchisees that its principals and affiliates are not legally restricted from conducting business activities due to legal actions. This is a standard disclosure in franchise agreements, intended to provide transparency and build trust with prospective franchisees. Franchisees should still conduct their own due diligence to verify these claims and assess any potential risks.