What right does the Kidokinetics Franchisor waive in consenting to the Requested Assignment of the Franchised Business?

According to Kidokinetics' 2024 Franchise Disclosure Document, when the Franchisor consents to the Requested Assignment of the Franchised Business from the former franchisee to the new franchisee, Kidokinetics waives its right of first refusal as outlined in the Former Franchise Agreement. This waiver is conditional upon receiving the Franchisor's Assignment Fee from the former franchisee and the mutual execution of the agreement by all involved parties.

In simpler terms, Kidokinetics normally has the first opportunity to buy back the franchise if a franchisee decides to sell. However, in the specific case of a requested assignment to a new franchisee, Kidokinetics relinquishes this right, allowing the transfer to proceed directly to the new franchisee if the conditions are met. This benefits both the former and new franchisees by streamlining the transfer process, as Kidokinetics cannot step in to purchase the franchise themselves, potentially delaying or complicating the sale.

This waiver is significant because it clarifies the process for transferring a Kidokinetics franchise to a new owner. It provides a more straightforward path for existing franchisees looking to sell their business and for prospective franchisees seeking to acquire an existing Kidokinetics location. However, it's important to note that this waiver is specifically tied to the 'Requested Assignment' scenario and doesn't necessarily apply to other types of transfers or sales of the franchise.