Does Kidokinetics have the right to reduce the scope of any covenant in Article 18 without the franchisee's consent?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.7. Reduction of Time or Scope. If the period of time or the geographic scope specified above should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion of geographic scope, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable. In addition, Franchisor has the right, in its sole discretion, to reduce the scope of any covenant set forth in this Article 18 or any portion thereof, without Franchisee's consent, effective immediately upon receipt by Franchisee of written notice, and Franchisee agrees to immediately comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Kidokinetics does have the right to reduce the scope of any covenant in Article 18 without the franchisee's consent. Specifically, Article 18 addresses non-disclosure and non-competition covenants within the franchise agreement.
The FDD states that Kidokinetics has the authority to modify these covenants. This means Kidokinetics can lessen the restrictions placed on the franchisee regarding competition or disclosure of confidential information. This modification becomes effective immediately once the franchisee receives written notice of the change.
This clause provides Kidokinetics with flexibility to adjust the non-compete and non-disclosure terms as needed. For a potential franchisee, this means the initial terms outlined in the franchise agreement could be altered by Kidokinetics during the term of the agreement. While Kidokinetics can reduce the scope of these covenants, it is important to note that the franchisee must comply with the modified terms immediately upon notification.