Does the Kidokinetics Software License Agreement require guarantors, and if so, are they individually bound?

According to Kidokinetics' 2024 Franchise Disclosure Document, the Software License Agreement does require guarantors. Specifically, the FDD states that guarantors must agree to personally, jointly, and severally guarantee the franchisee's obligations and covenants under the Software License Agreement. This means each guarantor is individually responsible for the full amount of the franchisee's obligations.

This requirement has significant implications for anyone considering acting as a guarantor for a Kidokinetics franchisee. If the franchisee fails to meet their obligations under the Software License Agreement, Kidokinetics can pursue any or all of the guarantors for the full amount owed, regardless of the number of guarantors involved. This is a standard practice in franchising, as it provides the franchisor with added financial security.

Prospective franchisees and their guarantors should carefully review the Software License Agreement and understand the full extent of the obligations being guaranteed. It is advisable to seek legal counsel to fully understand the implications of a joint and several guarantee before signing the agreement. This ensures that all parties are aware of the potential risks and liabilities involved.