What is the significance of the date mentioned in the Kidokinetics 'Approval of Requested Assignment' agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| This Approval of Requested Assignment ("Agreement") is entered into this day of, 20, between Kidokinetics Franchise LLC ("Franchisor"), a |
|---|
| Florida limited liability company, ("Former Franchisee"), the |
| Florida limited liability company, ("Former Franchisee"), the undersigned owners of Former Franchisee ("Owners") and, a |
| [a/an Formation State] [corporation/limited liability company]"_("New Franchisee"). |
| RECITALS |
| WHEREAS, Franchisor and Former Franchisee entered into that certain franchise agreement dated, 20 ("Former Franchise Agreement"), in which |
| Franchisor granted Former Franchisee the right to operate a Kidokinetics franchise located at ("Franchised Business"); and |
| WHEREAS, Former Franchisee desires to assign ("Requested Assignment") the Franchised Business to New Franchisee, New Franchisee desires to accept the Requested Assignment of the Franchised Business from Former Franchisee, and Franchisor desires to approve the Requested Assignment of the Franchised Business from Former Franchisee to New Franchisee upon the terms and conditions contained in this Agreement, including that New Franchisee sign Franchisor's current form of franchise agreement together with all exhibits and attachments thereto ("New Franchise Agreement"), contemporaneously herewith. |
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the 'Approval of Requested Assignment' agreement includes a space for a date. This date signifies when the agreement is officially entered into between Kidokinetics Franchise LLC (the franchisor), the former franchisee, the owners of the former franchisee, and the new franchisee.
The agreement outlines the terms and conditions under which the former franchisee can transfer their Kidokinetics franchise to a new franchisee. It references a prior franchise agreement with a date, referred to as the "Former Franchise Agreement," which establishes the original franchising relationship. The new franchisee must also sign Kidokinetics's current form of franchise agreement.
The date is important because it legally binds all parties to the terms outlined in the agreement, including the payment of fees, the transfer of rights, and the obligations of each party involved. It also triggers the start of the new franchisee's obligations under the current franchise agreement. Prospective franchisees should pay close attention to these dates as they mark important milestones in the transfer process.