factual

What remedy is Kidokinetics entitled to if a franchisee violates the terms of the franchise agreement?

Kidokinetics Franchise · 2024 FDD

Answer from 2024 FDD Document

OF THIS AGREEMENT AS BEING OVERLY BROAD, UNREASONABLE, OR OTHERWISE UNENFORCEABLE.

    1. Breach. You agree that failure to comply with this Agreement will cause substantial and irreparable damage to us and/or other Kidokinetics franchisees for which there is no adequate remedy at law. Therefore, you agree that any violation of this Agreement will entitle us to injunctive relief. You agree that we may apply for such injunctive relief, without bond, but upon due notice, in addition to such further and other relief as may be available at equity or law, and the sole remedy of yours, in the event of the entry of such injunction, will be the dissolution of such injunction, if warranted, upon hearing duly held (all claims for damages by reason of the wrongful issuance of any such injunction being expressly waived hereby). If a court requires the filing of a bond notwithstanding the preceding sentence, the parties agree that the amount of the bond shall not exceed $1,000. None of the remedies available to us under this Agreement are exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance, and recovery of monetary damages. Any claim, defense, or cause of action you may have against us or against Franchisee, regardless of cause or origin, cannot be used as a defense against our enforcement of this Agreement.

7. Miscellaneous.

  • a. Although this Agreement is entered into in favor of Kidokinetics Franchise LLC, you understand and acknowledge that your employer/employee, independent contractor, agent, representative, or supplier relationship is with Franchisee and not with us, and for all purposes in connection with such relationship, you will look to Franchisee and not to us.
  • b. If we pursue legal remedies against you because you have breached this Agreement and prevail against you, you agree to pay our reasonable attorney fees and costs in doing so.
  • c. This Agreement will be governed by, construed, and enforced under the laws of Florida, and the courts in that state shall have jurisdiction over any legal proceedings arising out of this Agreement.
  • d. Each section of this Agreement, including each subsection and portion, is severable. If any section, subsection, or portion of this Agreement is unenforceable, it shall not affect the enforceability of any other section, subsection, or portion; and each party to this Agreement agrees that the court may impose such limitations on the terms of this Agreement as it deems in its discretion necessary to make such terms enforceable.

| EXECUTED on the date stated below.

Source: Item 22 — CONTRACTS (FDD page 59)

What This Means (2024 FDD)

According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee fails to comply with the terms of the franchise agreement, Kidokinetics is entitled to injunctive relief because failure to comply with the agreement will cause substantial and irreparable damage to Kidokinetics and/or other Kidokinetics franchisees, for which there is no adequate remedy at law. Kidokinetics can apply for injunctive relief without bond, but upon due notice. The franchisee's sole remedy, if an injunction is entered, will be the dissolution of such injunction, if warranted, upon a duly held hearing. The franchisee expressly waives all claims for damages due to the wrongful issuance of any injunction. If a court requires a bond, the parties agree that the bond will not exceed $1,000.

Kidokinetics's remedies are cumulative and may be combined with others under the agreement, at law, or in equity, including injunctive relief, specific performance, and recovery of monetary damages. Any claim, defense, or cause of action the franchisee may have against Kidokinetics or another franchisee cannot be used as a defense against Kidokinetics's enforcement of the agreement.

Additionally, if Kidokinetics prevails in legal proceedings against a franchisee for breaching the agreement, the franchisee must pay Kidokinetics's reasonable attorney fees and costs. If the franchisee defaults, they must promptly pay all sums owing to Kidokinetics and its affiliates, including all damages, costs, and expenses, including reasonable attorneys' fees, incurred by Kidokinetics as a result of the franchisee's default. This payment obligation creates a lien in favor of Kidokinetics against the franchisee's personal property used in the Kidokinetics business.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.