What is the significance of the 'Recitals' section in the Kidokinetics 'Approval of Requested Assignment'?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| 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 'Recitals' section in the 'Approval of Requested Assignment' agreement provides the background and context for the agreement. It outlines the existing relationship between Kidokinetics and the former franchisee, as well as the intentions of all parties involved in the transfer of the franchise.
Specifically, the recitals acknowledge the existence of the 'Former Franchise Agreement' and the former franchisee's right to operate a Kidokinetics franchise at a particular location. They also state the former franchisee's desire to assign the franchise to a new franchisee, the new franchisee's willingness to accept the assignment, and Kidokinetics's approval of the assignment, contingent upon the new franchisee signing the current franchise agreement.
In essence, the 'Recitals' section sets the stage for the legally binding terms and conditions that follow in the agreement. It clarifies the reasons for the agreement and the mutual understanding among Kidokinetics, the former franchisee, and the new franchisee regarding the transfer of the franchise. This section is crucial for interpreting the subsequent clauses and obligations outlined in the 'Approval of Requested Assignment'.