Will the then-current form of franchise agreement for Kidokinetics renewal have materially different terms and conditions than the original?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| 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, the then-current form of franchise agreement at the time of renewal may have materially different terms and conditions than the original franchise agreement.
To renew the Kidokinetics franchise agreement for an additional term of 10 years, a franchisee must meet several requirements. These include being in full compliance with the existing agreement, providing timely written notice of intent to renew, updating machinery and equipment as required, satisfying all monetary obligations, and executing the then-current form of the franchise agreement.
This condition means that when a franchisee seeks to renew their Kidokinetics franchise, they will likely be subject to a new franchise agreement that may contain terms and conditions that are significantly different from those in their original agreement. This is a common practice in franchising, as franchisors update their agreements to reflect changes in the market, legal requirements, and the Kidokinetics business model. A prospective franchisee should carefully review and compare the terms of the original and then-current franchise agreements to understand the potential impact of these changes on their business.