Are there any specific monetary obligations that must be satisfied for Kidokinetics franchise renewal?
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, to renew the franchise for an additional 10-year term, a franchisee must meet several requirements, including satisfying all monetary obligations. This means that a franchisee must have paid all outstanding fees, royalties, and other amounts owed to Kidokinetics before the renewal can be granted.
In addition to satisfying all monetary obligations, the franchisee must also be in full compliance with all provisions of the Franchise Agreement. The franchisee must provide written notice of their intent to renew at least 90 days, but not more than nine months, before the end of the current term.
Furthermore, franchisees must update machinery, equipment, tools, and vehicles as required by Kidokinetics. They must also execute the then-current form of the franchise agreement, which may contain materially different terms and conditions than the original agreement. Franchisees will also need to comply with then-current qualifications and training requirements, including completing additional training if required by Kidokinetics. Finally, the franchisee must execute a general release and pay Kidokinetics a Renewal Fee, though the specific amount of this fee is not specified in this section.
It is important for prospective franchisees to understand all the conditions for renewal, including the monetary obligations, as failure to meet these conditions may result in Kidokinetics refusing to renew the franchise agreement. Franchisees should carefully review Article 4 of the Franchise Agreement, as referenced in the FDD, to fully understand the renewal terms and conditions.