What should a prospective Kidokinetics franchisee do with the disclosure document?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPT]
Issuance Date: April 19, 2024
I received a disclosure document issued April 19, 2024 which included the following exhibits:
Exhibit A List of State Administrators and Agents for Service of Process Exhibit B Franchise Agreement Exhibit C Franchise Operations Manual Table of Con ntents Exhibit D Financial Statements Exhibit E List of Current and Former Franchisees Exhibit F Franchise Disclosure Questionnaire Exhibit G State Addenda and Agreement Riders Exhibit H Contracts for Use with the Kidokinetics Fr anchise Exhibit I State Effective Dates Exhibit J Receipt Rev. 012417
PLEASE RETAIN THIS COPY FOR YOUR RECORDS.
RECEIPT (Our Copy)
This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.
If Kidokinetics Franchise LLC offers you a franchise, it must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale.
Under Iowa law, if applicable, Kidokinetics Franchise LLC must provide this disclosure document to you at your first personal meeting to discuss the franchise. Michigan requires Kidokinetics Franchise LLC to give you this disclosure document at least ten business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first. New York requires you to receive this disclosure document at the earlier of the first personal meeting or ten business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
If Kidokinetics Franchise LLC does not deliver this disclosure document on time or if it contains a false or misleading statement or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, D.C. 20580, and the appropriate state agency identified on Exhibit A.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, a prospective franchisee should retain a copy of the disclosure document for their records. The FDD also emphasizes the importance of carefully reading the disclosure document and all related agreements, as the document summarizes key provisions of the franchise agreement and other relevant information in plain language.
Kidokinetics is legally obligated to provide the disclosure document to prospective franchisees at least 14 calendar days before they sign any binding agreement or make any payment to Kidokinetics or its affiliates related to the franchise sale. This 14-day period allows potential franchisees to thoroughly review the document and seek professional advice.
Certain states have specific requirements regarding the timing of the disclosure. For example, under Iowa law (if applicable), Kidokinetics must provide the disclosure document at the first personal meeting to discuss the franchise. Michigan requires delivery at least ten business days before signing any agreement or making any payment, whichever comes first. New York mandates providing the document at the earlier of the first personal meeting or ten business days before agreement execution or payment.
The FDD also advises that if Kidokinetics does not deliver the disclosure document on time or if it contains false or misleading statements or material omissions, it could be a violation of federal and state laws. In such cases, the potential franchisee should report this to the Federal Trade Commission and the appropriate state agency listed in Exhibit A of the FDD. Prospective franchisees should answer the questions in the receipt to acknowledge they have reviewed and understood the documents.