Are there any exceptions to the claims released in the Kidokinetics Waiver and Release of Claims?

According to Kidokinetics' 2024 Franchise Disclosure Document, the franchisor's consent to a transfer of the franchise agreement does not waive any claims Kidokinetics may have against the franchisee or their principals. Additionally, it does not waive Kidokinetics' right to demand that the transferee strictly comply with the franchise agreement. This means that even if Kidokinetics approves a transfer, they retain all existing rights and claims against the original franchisee and can still enforce the agreement's terms against the new franchisee.

This provision protects Kidokinetics by ensuring that they do not lose any legal recourse they might have against the original franchisee simply by allowing a transfer of ownership. It also ensures that the new franchisee is held to the same standards and obligations as the original franchisee, maintaining the integrity of the Kidokinetics system.

For a prospective franchisee, this means that transferring the franchise doesn't absolve them of any prior liabilities or breaches of contract. They remain responsible for any outstanding issues, and the new owner must adhere to all the original terms. This clause is fairly standard in franchise agreements, as franchisors typically want to maintain their rights and ensure consistent brand standards regardless of ownership changes.