What specific actions can Kidokinetics take regarding the company's structure or assets that would allow them to assign the Franchise Agreement?

According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics as the Franchisor has the right to assign its rights within the Franchise Agreement. Specifically, Kidokinetics is not required to remain in the youth fitness business, or to offer or sell any products or services to the franchisee if they assign their rights in the agreement.

This means that a prospective Kidokinetics franchisee needs to be aware that the company could be sold to another entity. The new entity would then assume the rights and responsibilities of the franchisor. This could result in changes to the franchise system, such as new branding, operational procedures, or support structures.

While Kidokinetics can assign its rights, the franchisee's ability to transfer their rights is restricted. The franchisee must obtain prior written approval from Kidokinetics for any transfer of the agreement, the Kidokinetics business, or any assets related to it. Kidokinetics will assess the proposed transferee based on their character, skills, and financial capacity, and will not unreasonably withhold consent if the requirements are met.