What representation does the Releasor make regarding individuals holding ownership interest in the Kidokinetics Franchisee?

According to the 2024 Kidokinetics Franchise Disclosure Document, the franchisee represents that the ownership interests in the franchisee are accurately and completely described on Attachment D of the Franchise Agreement. Furthermore, the franchisee is obligated to provide Kidokinetics with an updated list of all owners of the entity immediately upon any change of ownership. The franchisee must also make a list of its owners available to Kidokinetics at any time upon request.

This means that Kidokinetics requires full transparency regarding the ownership structure of its franchisees. Attachment D serves as the initial declaration of ownership, and the franchisee has a continuing duty to keep this information current. This allows Kidokinetics to know who its franchisees are and to ensure that all owners meet the brand's standards.

For a prospective Kidokinetics franchisee, this requirement means that you must be prepared to disclose all individuals or entities with an ownership stake in your franchise. Any changes in ownership must be promptly reported to Kidokinetics. Failure to comply with these requirements could potentially lead to a breach of the franchise agreement.

This level of transparency is fairly common in franchising, as franchisors need to ensure that all individuals associated with their brand meet certain standards and qualifications. It also allows the franchisor to maintain control over who is involved in the operation of the franchise.