Is Kidokinetics required to disclose or grant to Franchisee a like or similar variation in standards?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary contained in this Agreement, and this Section in particular, Franchisee acknowledges and agrees that, because complete and detailed uniformity under many varying conditions may not be possible or practical, Franchisor specifically reserves the right and privilege, at its sole discretion and as it may be deemed in the best interests of all concerned in any specific instance, to vary performance standards for some franchisees based upon the peculiarities and characteristics of the particular site or circumstance, business potential, existing business practices or any other condition which Franchisor deems to be of importance to the successful operation of such particular franchise business.
Franchisor has full rights to vary standard specifications and practices for any other franchisee at any time without giving Franchisee comparable rights.
Franchisee will not be entitled to require Franchisor to disclose or grant to Franchisee a like or similar variation.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics retains the right to vary performance standards for some franchisees based on specific circumstances, but franchisees are not entitled to demand similar variations or disclosures about variations granted to others.
Specifically, Kidokinetics reserves the right to adjust performance standards for individual franchisees, considering factors such as the site's characteristics, business potential, existing practices, or any other condition deemed important for the franchise's success. This allows Kidokinetics to adapt to unique local conditions and business environments, potentially benefiting certain franchisees.
However, the agreement explicitly states that franchisees cannot require Kidokinetics to disclose or grant them similar variations. This means that a franchisee cannot demand the same treatment as another franchisee, even if they believe their situation warrants it. Kidokinetics has full rights to vary standard specifications and practices for any other franchisee at any time without giving a franchisee comparable rights.
This clause gives Kidokinetics significant flexibility in managing its franchise system but also creates a potential risk for franchisees who may feel disadvantaged by the lack of transparency or equal treatment. Prospective franchisees should carefully consider this provision and discuss with Kidokinetics the criteria and processes used to determine variations in standards.