factual

Does Kidokinetics have to provide prior knowledge to the franchisee before assigning the Franchise Agreement?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

ed for the operation of the Kidokinetics Business;

  • 15.3.13. Franchisee must request that Franchisor provide the prospective transferee with Franchisor's current form of franchise disclosure document, and Franchisor will not be liable for any representations not included in the franchise disclosure document;
  • 15.3.14. Franchisor's approval of the transfer will not constitute a waiver of any claims Franchisor may have against the transferring party;
  • 15.3.15. Franchisor will have the right to disclose to any prospective transferee such revenue reports and other financial information concerning Franchisee and Franchisee's Kidokinetics Business as Franchisee has supplied Franchisor hereunder; and

  • 15.3.16. In any event, Franchisor may withhold or condition Franchisor's consent to any transfer as Franchisor deems appropriate based on the circumstances of the transfer or otherwise.
  • 15.4. Transfer Fee. As a condition to any Transfer, Franchisee shall pay Franchisor a transfer fee equal to $10,000 for the first Kidokinetics business that Franchisee transfers and $5,000 for each subsequent or additional Kidokinetics Business that Franchisee Transfers (the "Transfer Fee"). If Franchisor agrees to extend the transferee's term to ten (10) years under a new franchise agreement, the Transfer Fee will be replaced by the Franchisor's then-current initi

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee wishes to transfer their franchise to a new owner, the franchisee must request that Kidokinetics provide the prospective transferee with the current Franchise Disclosure Document. Kidokinetics will not be held liable for any representations that are not included in the Franchise Disclosure Document.

Kidokinetics retains the right to share revenue reports and other financial information about the franchisee and their Kidokinetics business with potential transferees, provided that the franchisee has supplied this information to Kidokinetics. However, Kidokinetics's approval of a transfer does not waive any claims they may have against the transferring party.

Kidokinetics may withhold or set conditions on their consent to any transfer based on the specific circumstances or other factors they deem appropriate. As a condition of the transfer, the franchisee must pay Kidokinetics a transfer fee of $10,000 for the first Kidokinetics business transferred and $5,000 for each subsequent business transferred. If Kidokinetics agrees to extend the transferee's term to ten years under a new franchise agreement, the transfer fee will be replaced by Kidokinetics's then-current initial franchise fee under the new franchise agreement.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.