After termination of my Kidokinetics franchise, am I allowed to interfere with the business of other Kidokinetics franchisees?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- 18.5.2.
Upon the expiration or earlier termination of this Agreement, or upon a Transfer and continuing for 24 months, Franchisee and Principals, and the spouse of Franchisee and each Principal if any, shall not, either directly or indirectly, for themselves or through, on behalf of or in conjunction with any person or entity (i) divert, or attempt to divert, any business or customer of the Kidokinetics Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise; (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in Competing Business within a twenty (20) mile radius of the perimeter of (a) the Territory being granted hereunder, or (b) any other Territory licensed by Franchisor as of the date of expiration or termination of this Agreement; (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Kidokinetics franchisees; or (v) solicit business from customers of Franchisee's former Kidokinetics Business or contact any of Franchisor's suppliers or vendors for any competitive business purpose.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, after the termination of the Franchise Agreement, franchisees are restricted from interfering with the business of other Kidokinetics franchisees. Specifically, for a period of 24 months after the expiration or termination of the agreement, the franchisee and their principals (as well as their spouses) are prohibited from taking actions that could harm the Kidokinetics system.
This includes directly or indirectly diverting or attempting to divert business or customers to a competitor, participating in a competing business within a 20-mile radius of the former territory or any other territory licensed by Kidokinetics, or performing any act that could be injurious or prejudicial to the goodwill associated with the Kidokinetics brand and system. The franchisee is also barred from interfering with, disturbing, disrupting, decreasing, or otherwise jeopardizing the business of Kidokinetics or any of its franchisees.
Furthermore, the franchisee is not allowed to solicit business from customers of their former Kidokinetics business or contact any of Kidokinetics's suppliers or vendors for any competitive business purpose during this 24-month period. These restrictions are in place to protect the Kidokinetics system and brand reputation, ensuring that former franchisees do not leverage their past association with Kidokinetics to unfairly compete or harm the network of existing franchisees.