What is the relationship between the Former Franchise Agreement and the 'Approval of Requested Assignment' 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 "). |
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- Assignment and Assumption. Former Franchisee hereby consents to assign all of its rights and delegate its duties with regard to the Former Franchise Agreement and all exhibits and attachments thereto from Former Franchisee to New Franchisee, subject to the terms and conditions of this Agreement, and conditioned upon New Franchisee's signing the New Franchise Agreement pursuant to Section 5 of this Agreement.
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- Consent to Requested Assignment of Franchised Business. Franchisor hereby consents to the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon receipt of the Franchisor's Assignment Fee from Former Franchisee and the mutual execution of this Agreement by all parties. Franchisor waives its right of first refusal set forth in the Former Franchise Agreement.
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- Termination of Rights to the Franchised Business. The parties acknowledge and agree that effective upon the date of this Agreement, the Former Franchise Agreement shall terminate and all of Former Franchisee's rights to operate the Franchised Business are terminated and that from the date of this Agreement only New Franchisee shall have the sole right to operate the Franchised Business under
the New Franchise Agreement. Former Franchisee and the undersigned Owners agree to comply with all of the covenants in the Former Franchise Agreement that expressly or by implication survive the termination, expiration, or transfer of the Former Franchise Agreement. Unless otherwise precluded by state law, Former Franchisee shall execute Franchisor's current form of General Release Agreement.
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- New Franchise Agreement. New Franchisee shall execute the New Franchise Agreement for the Franchised Business (as amended by the form of Addendum prescribed by Franchisor, if applicable), and any other required contracts for the operation of a Kidokinetics franchise as stated in Franchisor's Franchise Disclosure Document.
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- Former Franchisee's Contact Information.
Former Franchisee agrees to keep Franchisor informed of its current address and telephone number at all times during the three-year period following the execution of this Agreement.
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' is an agreement that facilitates the transfer of a Kidokinetics franchise from a former franchisee to a new franchisee. The 'Former Franchise Agreement' is the original franchise agreement between Kidokinetics and the former franchisee, granting them the right to operate a Kidokinetics franchise at a specific location.
The 'Approval of Requested Assignment' outlines the conditions under which Kidokinetics will approve the transfer of the franchised business. This includes the former franchisee's desire to assign the business to a new franchisee, the new franchisee's willingness to accept the assignment, and Kidokinetics's consent to the transfer based on the terms outlined in the agreement. A key condition is that the new franchisee must sign Kidokinetics's current form of franchise agreement, referred to as the 'New Franchise Agreement'.
Upon the execution of the 'Approval of Requested Assignment', the 'Former Franchise Agreement' terminates, and all rights of the former franchisee to operate the Kidokinetics business cease. The new franchisee then assumes the sole right to operate the business under the 'New Franchise Agreement'. The former franchisee is still obligated to comply with any covenants in the 'Former Franchise Agreement' that survive termination, expiration, or transfer. Additionally, the former franchisee may be required to execute Kidokinetics's current form of General Release Agreement, unless state law prevents it.
In order to proceed with the assignment, the former franchisee must pay Kidokinetics the Transfer Fee, as required under the Franchise Agreement, also referred to as the Franchisor's Assignment Fee. Kidokinetics also waives its right of first refusal, which it may have had under the Former Franchise Agreement. The former franchisee must also keep Kidokinetics informed of their current address and telephone number for three years after the execution of the Approval of Requested Assignment.