What is Kidokinetics' policy regarding liability for damages resulting from disabling the KIDOLINK Software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
isee agrees to continue to use the KIDOLINK Software and any updated versions of it as long as Franchisor requires it.
- (d) Disabling of the KIDOLINK Software. Franchisee understands that Franchisor may include a feature in the KIDOLINK Software that will cause the KIDOLINK Software to automatically cease to operate in whole or in part in the event Franchisee materially breaches this Agreement, the Franchise Agreement, or fails in a timely manner to (i) submit to Franchisor the reports required by Franchisor; (ii) pay to Franchisor the required fees under this Agreement; or (iii) pay to Franchisor the Royalty Fee or any other amounts due to Franchisor under the Franchise Agreement. Franchisor will not be liable to Franchisee for any damages whatsoever that may result directly or indirectly from Franchisor's disabling of the functionality of the KIDOLINK Software pursuant to this Section.
- (e) Disposition of Copies.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics will not be liable to the franchisee for any damages resulting from disabling the KIDOLINK Software. Kidokinetics may include a feature in the KIDOLINK Software that will cause the KIDOLINK Software to automatically cease to operate in whole or in part if the franchisee materially breaches the agreement, fails to submit required reports, or fails to pay required fees.
This means that if Kidokinetics disables the KIDOLINK software due to a franchisee's breach of contract or failure to pay, the franchisee cannot sue Kidokinetics for any resulting losses or damages. This could include lost revenue, wasted marketing expenses, or other financial setbacks. The franchisee bears the risk of these potential damages.
Furthermore, the FDD states that upon the expiration or termination of the license to use the KIDOLINK Software, or if the KIDOLINK Software is disabled, the franchisee will not receive any refund of payments made to Kidokinetics. This reinforces the risk to the franchisee, as they not only lose access to the software but also forfeit any payments made for its use. Prospective franchisees should carefully consider these terms and ensure they understand the conditions under which the software can be disabled and the potential financial consequences.