What restriction is placed on who a Kidokinetics franchisee can appoint as a manager?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
greement.
- 10.3. Appointment of Manager. Franchisee, or its shareholder or member if Franchisee is an entity, must devote his/her full-time attention and best efforts to the management and operation of the Franchised Business,
or may delegate the day-to-day operations of the Franchised Business to a manager ("Manager"). Franchisee may not appoint a Manager who is not the Franchisee or Principal of the Franchisee, if an entity, without the approval of Franchisor. All requests regarding appointment of a Manager must be in writing. The Manager shall meet Franchisor's standards and criteria, as set forth in the Franchise Operations Manual or otherwise in writing by Franchisor, and will be an individual otherwise acceptable to Franchisor in its sole discretion. The Manager will devote his or her full time and best efforts to the supervision and management of the Kidokinetics Business, and may not engage in any other business activity without the Franchisor's consent, which may be withheld in Franchisor's sole discretion. The Manager will satisfy the training requirements set forth in Article 6. If the Franchised Business is operated by a Manager, then a Principal of Franchisee must devote at least 20 hours of work per month to the operation of the Franchised Business.
- 10.3.1.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee must either manage the Kidokinetics business themselves or appoint a manager to oversee daily operations. However, there are restrictions on who the franchisee can appoint as a manager.
Specifically, if the franchisee is an entity (like a corporation or LLC), the manager must be either the franchisee itself or a principal of the franchisee. If the franchisee wants to appoint someone else as manager, they must obtain approval from Kidokinetics. This approval is not guaranteed, as the chosen manager must meet Kidokinetics's standards and criteria, as detailed in the Franchise Operations Manual or in writing. Kidokinetics retains the sole discretion to accept or reject the manager.
This requirement ensures that any individual managing a Kidokinetics franchise meets the franchisor's standards and is fully dedicated to the business. The manager must devote their full time and best efforts to the Kidokinetics business and cannot engage in other business activities without Kidokinetics's consent. Additionally, if a manager is appointed, a principal of the franchisee must still dedicate at least 20 hours per month to the operation of the franchise.