What representations are NOT disclaimed by the Kidokinetics franchise agreement or any related agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 15.3.7.
Franchisor has granted written approval of the material terms and conditions of the Transfer, including, without limitation, that the price and terms of payment will not adversely affect the Kidokinetics Business's operation.
However, Franchisor's approval of a Transfer is not in any way a representation or warranty of the transferee's success or the soundness of transferee's decision to purchase the Franchise on such terms and conditions.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, the franchise agreement does contain disclaimers regarding the success of a transferee. Specifically, if a franchisee transfers their Kidokinetics business to a new owner, Kidokinetics's approval of this transfer does not represent or warrant the transferee's future success or the soundness of their decision to purchase the franchise. This means that while Kidokinetics must approve the transfer, this approval is not a guarantee that the new owner will be successful.
This disclaimer protects Kidokinetics from liability if a new franchisee, who acquired the franchise through a transfer, fails to operate the business successfully. It clarifies that Kidokinetics's role in approving the transfer is primarily to ensure that the terms of the transfer do not negatively impact the Kidokinetics business, rather than to assess the transferee's business acumen or likelihood of success.
For a prospective franchisee, this highlights the importance of conducting thorough due diligence before purchasing an existing Kidokinetics franchise. While the franchisor's approval is necessary for the transfer, franchisees should not rely on this approval as an indicator of the business's potential or the new owner's capabilities. It is essential to independently evaluate the business's financial performance, market conditions, and any other factors that could affect its future success.