Which sections of the Kidokinetics FDD outline the franchisee's obligations after termination of the franchise agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Obligation | Disclosure Document Item | ||
|---|---|---|---|
| d. | Initial and ongoing training | 6 | 11 |
| e. | Opening | 7.2 | 11 |
| f. | Fees | 4.1.8., 5, 6.4, 6.5, 6.6, 12, 15.4, Schedule 1 | 5, 6, 7 |
| g. | Compliance with standards and policies/Operating Manual | 8, 10, 11.1, 18.1 | 8, 11 |
| h. | Trademarks and proprietary information | 11.1, 13, 18.2, Attachment A | 13, 14 |
| i. | Restrictions on products/services offered | 12 | 8 |
| j. | Warranty and customer service requirements | Not applicable | Not applicable |
| k. | Territorial development and sales quotas | 2.1, Attachment B | 12 |
| l. | Ongoing product/service purchases | 11.1, 12.3 | 8 |
| m. | Maintenance, appearance and remodeling requirements | 8, 11.1 | Not applicable |
| n. | Insurance | 14 | 7 |
| o. | Advertising | 12 | 6, 11 |
| p. | Indemnification | 11.7, 13.8, 14.4 | 14 |
| q. | Owner’s participation/management/ staffing | 10.3, 11.1 | 11, 15 |
| r. | Records and reports | 11.2 | 6 |
| s. | Inspections and audits | 9.2, 11.2 | 6, 11 |
| t. | Transfer | 15 | 17 |
| u. | Renewal | 4 | 17 |
| v. | Post-termination obligations | 17 | 17 |
| w. | Non-competition covenants | 18 | 17 |
| x. | Dispute resolution | 19 | 17 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 24–26)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, Item 9 provides a table outlining the franchisee's principal obligations under the franchise and other agreements. This table is designed to help franchisees locate more detailed information about their obligations within the franchise agreement and other items in the disclosure document. Specifically, it identifies where these obligations are discussed in the franchise agreement and in which item of the disclosure document further details can be found.
Referring to the table within Item 9, the row pertaining to "Post-termination obligations" indicates that these obligations are detailed in Section 17 of the Franchise Agreement and also in Item 17 of the Disclosure Document. This means that a prospective Kidokinetics franchisee can find information regarding what they are required to do after the franchise agreement ends in both of these locations.
It is important for potential franchisees to carefully review both Section 17 of the Franchise Agreement and Item 17 of the FDD to fully understand their responsibilities upon termination. These obligations can include, but are not limited to, ceasing use of Kidokinetics's trademarks, returning confidential information, and adhering to non-compete agreements. Understanding these post-termination obligations is crucial for making an informed decision about investing in a Kidokinetics franchise.