How is the term 'Affiliates' defined in the Kidokinetics agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Prohibited Activities" means any or all of the following: (i) owning, operating, or having any other interest (as an owner, partner, director, officer, employee, manager, consultant, shareholder, creditor, representative, agent, or in any similar capacity) in a Competitive Business (other than owning an interest of five percent (5%) or less in a publicly-traded company that is a Competitive Business); (ii) diverting or attempting to divert any business from us (or one of our affiliates or franchisees); and/or (iii) inducing or attempting to induce any customer of ours (or of one of our affiliates or franchisees) to transfer their business to you or to any other person that is not then a franchisee of ours.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, the term 'affiliate' is referenced within the context of defining prohibited activities in the Sample System Protection Agreement. Specifically, an affiliate is mentioned in relation to diverting business or inducing customers away from Kidokinetics.
According to the agreement, 'Prohibited Activities' include diverting business from Kidokinetics, its affiliates, or franchisees, or inducing customers to transfer their business away from Kidokinetics, its affiliates, or franchisees. This indicates that Kidokinetics considers its affiliates and franchisees as part of its network, whose business and customer relationships are protected under the agreement.
For a prospective Kidokinetics franchisee, this definition is important because it clarifies the scope of activities that are considered competitive or harmful to the Kidokinetics system. It highlights that franchisees are not only restricted from competing directly with Kidokinetics but also from actions that could negatively impact the business of other franchisees or affiliates within the Kidokinetics network. This clause aims to protect the overall integrity and collaborative nature of the Kidokinetics franchise system.