What representation does a Kidokinetics franchisee make regarding its power to execute the Franchise Agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee represents that the execution of the Franchise Agreement and the transactions it outlines are within the franchisee's power and have been properly authorized by the franchisee. This means the franchisee confirms they have the legal authority and internal approvals needed to enter into the agreement.

Kidokinetics requires franchisees to provide copies of organizational documents, governing documents, resolutions, or consents authorizing the agreement. They must also furnish any certificates, buy-sell agreements, or other documents restricting the sale or transfer of equity interests. This documentation ensures Kidokinetics that the franchisee has the legal standing and internal authorization to fulfill the obligations of the Franchise Agreement.

This representation is crucial for Kidokinetics as it ensures the enforceability of the Franchise Agreement. If a franchisee lacks the power or authorization to enter into the agreement, it could lead to legal challenges and potential termination of the franchise. Therefore, Kidokinetics takes steps to verify this representation through required documentation and ongoing compliance.

Prospective franchisees should carefully review their own organizational documents and internal procedures to ensure they can truthfully make this representation. They should consult with legal counsel to confirm they have the necessary power and authorization before signing the Kidokinetics Franchise Agreement.