Is any party subject to a currently effective order of any national securities association suspending or expelling such person from membership in such association 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 Kidokinetics's 2024 Franchise Disclosure Document, with the stated exceptions, no party related to Kidokinetics, including the franchisor, its predecessors, individuals identified in Item 2, or affiliates offering franchises under the Kidokinetics trademark, is subject to a currently effective order from any national securities association or national securities exchange. This order would have to involve suspending or expelling the person from membership in such association or exchange.
This means that Kidokinetics is asserting that its principals and affiliates have not been sanctioned by securities industry regulatory bodies. This is a standard disclosure in franchise agreements, intended to provide assurance to potential franchisees about the ethical and legal standing of the franchisor and its associates.
Prospective franchisees should note that this statement is limited to currently effective orders. It does not necessarily mean that these parties have never been subject to such an order in the past, only that there isn't one in effect at the time of the FDD's issuance. It also relies on the accuracy and completeness of the franchisor's disclosures; independent verification is always advisable.