What specific machinery, equipment, tools, and vehicles must be updated for Kidokinetics franchise renewal?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| b. | Renewal or extension of the term | Article 4 | You may renew for one additional term of 10 years, subject to our renewal requirements. If you fail to meet any one of these conditions, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. | Requirements for franchisee to renew or extend | Article 4 | Be in full compliance, provide written notice to us at least 90 days, but not more than nine months, before the end of the term, update machinery, equipment, tools and vehicles as required, not be in default of any provision of the Franchise Agreement, satisfy all monetary obligations, execute our then-current form of franchise agreement (with materially different terms and conditions than your original Franchise Agreement), comply with then-current qualifications and training requirements, including completion of additional training, pay us a Renewal Fee, execute a general release. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, to renew the franchise agreement for an additional term of 10 years, a franchisee must update machinery, equipment, tools, and vehicles as required by Kidokinetics.
This requirement is one of several conditions that must be met to be eligible for renewal. Others include being in full compliance with the existing Franchise Agreement, providing timely written notice of intent to renew, not being in default of any provision, satisfying all monetary obligations, executing the then-current form of franchise agreement (which may have materially different terms), complying with current qualifications and training requirements (including additional training), paying a Renewal Fee, and executing a general release.
The FDD does not specify the criteria Kidokinetics uses to determine what updates to machinery, equipment, tools, and vehicles are "required." A prospective franchisee should seek clarification from Kidokinetics on what these requirements entail, how frequently updates are typically needed, and the estimated cost of such updates to better understand the financial implications of renewing the franchise agreement.