What specific rights does the Kidokinetics franchisor reserve regarding the substitution of Marks?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 13.6 Substitution.
Franchisor reserves the right to substitute different Marks for use in identifying the System and the Kidokinetics Business if the current Marks no longer can be used by Franchisor, or if Franchisor, in its sole discretion, determines that substitution of different Marks will be beneficial to the System.
In such event, Franchisor will require Franchisee, at Franchisee's expense, to discontinue or modify Franchisee's use of any of the Marks or to use one or more additional or substitute Marks no later than 10 days after notification thereof.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor retains specific rights regarding the substitution of Marks. Kidokinetics reserves the right to substitute different Marks for use in identifying the System and the Kidokinetics Business if the current Marks can no longer be used or if Kidokinetics determines that the substitution of different Marks will be beneficial to the System.
In the event of a substitution, Kidokinetics will require the franchisee, at the franchisee's expense, to discontinue or modify the use of any of the Marks or to use one or more additional or substitute Marks. The franchisee must comply with this requirement no later than 10 days after notification from Kidokinetics.
This clause means that a Kidokinetics franchisee may be forced to change their branding and marketing materials at their own cost if the franchisor decides to change the Marks. This could include new signage, business cards, and advertising materials. The franchisee has a limited time frame of 10 days to implement these changes after being notified by Kidokinetics, which could create a significant burden and expense.