What is the purpose of the Waiver and Release of Claims related to a Kidokinetics franchise agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
e at any time.
EXHIBIT H-1
KIDOKINETICS FRANCHISE
SAMPLE GENERAL RELEASE AGREEMENT
WAIVER AND RELEASE OF CLAIMS
This Waiver and Release of Claims ("Release") is made as of ___________________________________
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Kidokinetics business;
WHEREAS, (Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement) or (the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release), and Franchisor has consented to such (transfer/successor franchise agreement/amendment/termination/other reason);
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the Waiver and Release of Claims, also known as the "Release," is used when certain changes occur to the franchise agreement. Specifically, it is utilized when a franchisee seeks to transfer their agreement, enter into a successor franchise agreement, amend the existing agreement, or terminate the agreement.
The purpose of this release is to protect Kidokinetics by ensuring that the franchisee, or "Releasor," relinquishes any potential claims against the franchisor as a condition of the franchisor consenting to the transfer, successor agreement, amendment, or termination. This means that before Kidokinetics approves any of these changes, the franchisee must sign the release, agreeing not to sue or make any claims against Kidokinetics related to the franchise agreement.
For a prospective Kidokinetics franchisee, this implies that any significant changes to their franchise agreement, such as selling the franchise or ending the agreement early, will require them to sign a release. This release is a condition set by Kidokinetics to protect itself from potential legal action by the franchisee. Franchisees should carefully consider the implications of signing such a release and consult with an attorney to understand their rights and obligations before proceeding with any transfer, amendment, or termination of their franchise agreement.