What is the purpose of the 'Approval of Requested Assignment' agreement for Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Approval of Requested Assignment ("Agreement") is entered into this day of, 20, between Kidokinetics Franchise LLC ("Franchisor"), a |
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| Florida limited liability company, ("Former Franchisee"), the |
| Florida limited liability company, ("Former Franchisee"), the undersigned owners of Former Franchisee ("Owners") and, a |
| [a/an Formation State] [corporation/limited liability company]"_("New Franchisee"). |
| RECITALS |
| WHEREAS, Franchisor and Former Franchisee entered into that certain franchise agreement dated, 20 ("Former Franchise Agreement"), in which |
| Franchisor granted Former Franchisee the right to operate a Kidokinetics franchise located at ("Franchised Business"); and |
| WHEREAS, Former Franchisee desires to assign ("Requested Assignment") the Franchised Business to New Franchisee, New Franchisee desires to accept the Requested Assignment of the Franchised Business from Former Franchisee, and Franchisor desires to approve the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon the terms and conditions contained in this Agreement, including that New Franchisee sign Franchisor's current form of franchise agreement together with all exhibits and attachments thereto ("New Franchise Agreement"), contemporaneously herewith. |
| NOW, THEREFORE, in consideration of the mutual covenants, promises, and agreements herein contained, the parties hereto hereby covenant, promise, and agree as follows: |
| 1. Payment of Fees . In consideration for the Requested Assignment, Former Franchisee acknowledges and agrees to pay Franchisor the Transfer Fee, as required under the Franchise Agreement (" Franchisor's Assignment Fee "). |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the 'Approval of Requested Assignment' agreement outlines the terms and conditions under which a current franchisee (referred to as "Former Franchisee") can transfer their Kidokinetics franchise to a new owner ("New Franchisee"). This agreement involves Kidokinetics Franchise LLC ("Franchisor"), the former franchisee, the owners of the former franchisee, and the new franchisee.
The agreement stipulates that the former franchisee desires to assign their franchise business to the new franchisee, who in turn wishes to accept this assignment. Kidokinetics, as the franchisor, agrees to approve this transfer, provided that the new franchisee signs the current franchise agreement, including all associated exhibits and attachments. This ensures that the new franchisee is bound by the same terms and conditions as all other Kidokinetics franchisees.
Furthermore, the agreement addresses the financial aspects of the transfer. The former franchisee is obligated to pay Kidokinetics the transfer fee as outlined in the original franchise agreement. This fee serves as consideration for Kidokinetics's approval of the assignment. Overall, the 'Approval of Requested Assignment' agreement ensures a smooth and legally sound transition of ownership, protecting the interests of Kidokinetics while facilitating the transfer process between the former and new franchisees.