What provision must be made if Kidokinetics transfers its contractual obligations to a third party?

According to Kidokinetics's 2024 Franchise Disclosure Document, specifically regarding Michigan law, if Kidokinetics seeks to transfer its contractual obligations to a franchisee to a third party, it must ensure that provision has been made for providing the required contractual services. This means that before Kidokinetics can transfer its obligations, it must have a plan in place to ensure the franchisee continues to receive the services they are entitled to under the franchise agreement.

This provision is designed to protect franchisees from a situation where Kidokinetics transfers its obligations to an entity that is unable or unwilling to provide the necessary support and services. It ensures that the franchisee's business operations are not disrupted by the transfer.

For a prospective Kidokinetics franchisee in Michigan, this offers some assurance that if Kidokinetics were to transfer its obligations, the franchisee's contractual rights would be protected. However, franchisees should still carefully review the terms of any proposed transfer to ensure that the provision for contractual services is adequate and meets their needs. Franchisees should seek legal counsel to fully understand their rights and obligations in the event of such a transfer.