What are the requirements for a Kidokinetics franchisee to renew or extend their franchise term?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| b. | Renewal or extension of the term | Article 4 | You may renew for one additional term of 10 years, subject to our renewal requirements. If you fail to meet any one of these conditions, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Article 4 | Be in full compliance, provide written notice to us at least 90 days, but not more than nine months, before the end of the term, update machinery, equipment, tools and vehicles as required, not be in default of any provision of the Franchise Agreement, satisfy all monetary obligations, execute our then-current form of franchise agreement (with materially different terms and conditions than your original Franchise Agreement), comply with then-current qualifications and training requirements, including completion of additional training, pay us a Renewal Fee, execute a general release. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the initial franchise term is 10 years, with an option to renew for one additional term of 10 years. However, this renewal is contingent upon meeting specific requirements set by Kidokinetics.
To renew the franchise agreement, a franchisee must be in full compliance with the existing agreement. They must provide written notice to Kidokinetics at least 90 days, but not more than nine months, before the end of the current term. Additionally, franchisees are required to update their machinery, equipment, tools, and vehicles as needed to meet current standards.
Furthermore, the franchisee must not be in default of any provision within the Franchise Agreement and must have satisfied all monetary obligations to Kidokinetics. A significant condition for renewal is the execution of Kidokinetics's then-current form of franchise agreement, which may include materially different terms and conditions compared to the original agreement. Franchisees must also comply with the then-current qualifications and training requirements, potentially including the completion of additional training. They are also required to pay a Renewal Fee and execute a general release as part of the renewal process. If a franchisee fails to meet any of these conditions, Kidokinetics reserves the right to refuse the renewal or extension of the Franchise Agreement.