What is the purpose of the Kidokinetics 'Approval of Requested Assignment' agreement?
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 facilitates the transfer of a Kidokinetics franchise from a former franchisee to a new franchisee. This agreement outlines the conditions under which Kidokinetics approves the assignment of the franchise business.
The agreement stipulates that the former franchisee desires to assign their business to a new franchisee, and the new franchisee wishes to accept this assignment. Kidokinetics, in turn, agrees to approve the assignment based on the terms and conditions specified within the agreement. A key condition is that the new franchisee must sign Kidokinetics's current franchise agreement, including all associated exhibits and attachments.
Furthermore, the former franchisee is obligated to pay Kidokinetics a transfer fee, as mandated by the original franchise agreement, in exchange for the assignment. This fee is referred to as 'Franchisor's Assignment Fee'. The agreement ensures that all parties are aligned and that Kidokinetics receives due compensation for the transfer of the franchise rights.