Does Kidokinetics retain the right to develop other systems using the Kidokinetics marks?

According to the 2024 Kidokinetics Franchise Disclosure Document, Kidokinetics retains specific rights regarding the use of its marks. The franchise agreement grants Kidokinetics the right to use its marks for selling products and services, grant licenses to others for the marks, and develop other systems using the marks, similar proprietary marks, or any other proprietary marks. Kidokinetics can also grant licenses to these other systems without providing any rights to the franchisee.

This means that while a franchisee is granted a license to operate a Kidokinetics business using the Kidokinetics marks, this license is nonexclusive. Kidokinetics can use the marks themselves, allow others to use them, and create entirely new systems using the same or similar marks.

For a prospective franchisee, this clause has significant implications. Kidokinetics could potentially introduce new franchise systems or products that compete with existing franchisees, using similar branding. While the franchisee is building their business under the Kidokinetics name, Kidokinetics has the freedom to expand in ways that may or may not benefit the franchisee directly. It is important for a potential franchisee to understand that the franchise agreement does not prevent Kidokinetics from evolving its brand and business model, potentially in directions that could create internal competition or shift market focus.