What must stock or member certificates of a Kidokinetics franchisee entity contain?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 10.2.5.
Copies of Franchisee's organizational documents, other governing documents, resolutions or consents of the governing board authorizing entry into and performance of this Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity interests in Franchisee, and any other documents as may be reasonably required by Franchisor will be furnished to Franchisor prior to the execution of this Agreement;
- 10.2.6.
The ownership interests in Franchisee are accurately and completely described on Attachment D of this Agreement.
Upon the occurrence of any change of ownership, Franchisee will immediately provide Franchisor with a copy of the updated list of all owners of the entity.
Franchisee will make a list of its owners available to Franchisor at any time upon request;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, if a franchisee operates as a corporation, partnership, or limited liability company, they must furnish copies of organizational documents, governing documents, resolutions or consents authorizing entry into and performance of the Franchise Agreement, and any certificates, buy-sell agreements or other documents restricting the sale or transfer of equity interests in the franchisee to Kidokinetics prior to the execution of the agreement.
Kidokinetics requires that the ownership interests in the franchisee entity are accurately and completely described on Attachment D of the Franchise Agreement. Furthermore, the franchisee must immediately provide Kidokinetics with an updated list of all owners upon any change of ownership. Kidokinetics also requires the franchisee to make a list of its owners available to Kidokinetics at any time upon request.
These requirements ensure that Kidokinetics has a clear understanding of the franchisee's ownership structure and any restrictions on the transfer of ownership interests. This allows Kidokinetics to assess the stability and suitability of the franchisee and maintain control over who is involved in the operation of the Kidokinetics business. Franchisees should be prepared to provide this documentation and keep it updated throughout the term of the franchise agreement.