What are the 'then-current qualifications' that a Kidokinetics franchisee must meet to renew their franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
| Provision | Franchise or Other | Summary | |
|---|---|---|---|
| Agreement | |||
| a. | Length of the franchise term | Article 3 | The initial term is 10 years. |
| 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, a franchisee seeking to renew their franchise agreement for an additional 10-year term must meet several requirements. These include being in full compliance with the existing Franchise Agreement, providing written notice of their intent to renew at least 90 days but not more than nine months before the end of the current term, and updating machinery, equipment, tools, and vehicles as required by Kidokinetics.
Additionally, the franchisee must not be in default of any provision of the Franchise Agreement and must satisfy all outstanding monetary obligations to Kidokinetics. A significant condition is the requirement to execute Kidokinetics's then-current form of franchise agreement, which may contain materially different terms and conditions compared to the original agreement. The franchisee must also comply with the then-current qualifications and training requirements, which may include completing additional training programs as specified by Kidokinetics.
Finally, the franchisee is required to pay a Renewal Fee to Kidokinetics and execute a general release, potentially waiving any claims against the franchisor. Meeting all these conditions does not guarantee renewal, but failure to meet even one condition may result in Kidokinetics refusing to renew or extend the terms of the Franchise Agreement. This comprehensive set of requirements ensures that renewing franchisees align with Kidokinetics's current standards and practices, although it also introduces the risk of facing new, potentially more stringent, terms in the renewed agreement.