Does this section of the Kidokinetics FDD mention any financial thresholds related to the 'Approval of Requested Assignment'?

According to Kidokinetics's 2024 Franchise Disclosure Document, the approval of a requested assignment involves certain financial considerations. Specifically, the former franchisee is responsible for paying Kidokinetics a transfer fee. The amount of this fee depends on whether it is the first Kidokinetics business being transferred or a subsequent one. For the initial transfer, the fee is $10,000, while subsequent transfers incur a fee of $5,000 each.

However, there's an exception to this fee structure. If Kidokinetics agrees to extend the transferee's term to ten years under a new franchise agreement, the transfer fee is waived and replaced by Kidokinetics's then-current initial franchise fee. This implies that the new franchisee would essentially be starting a new franchise agreement rather than simply taking over the existing one.

Additionally, the FDD states that Kidokinetics must grant written approval of the transfer's material terms, including the price and payment terms, ensuring they do not negatively impact the Kidokinetics business's operation. This suggests that Kidokinetics has the right to refuse a transfer if the financial terms of the deal are deemed unfavorable to the ongoing health of the franchise. The franchisee or its principal must also ensure that any financing they provide to the transferee is subordinate to the transferee's obligations to Kidokinetics.