Under what circumstances can a Kidokinetics franchisee seek remedies based on alleged misrepresentation or deceit by the franchisor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
he System or the goodwill associated with the Marks:
- 16.2.11. receives an adverse judgment or a consent decree in any case or proceeding involving allegations of fraud, racketeering, unfair or improper trade practices or similar claim which is likely to have an adverse effect on the System, or the Marks, the goodwill associated with the System or Marks or Franchisor's interest, in Franchisor's sole opinion;
- 16.2.12. conceals revenues, knowingly maintains false books or records, or knowingly submits any false reports;
- 16.2.13. creates a threat or danger to public health or safety from the maintenance or operation of the Kidokinetics Business:
- 16.2.14. refuses to permit Franchisor to inspect or audit Franchisee's books or records;
Kidokinetics
- 16.2.15.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, there is no explicit clause detailing the circumstances under which a franchisee can seek remedies for misrepresentation or deceit by Kidokinetics. However, there are sections that generally address defaults, termination, and the franchisor's remedies, which could potentially relate to situations involving misrepresentation or deceit.
Specifically, section 16.2.11 discusses adverse judgments or consent decrees involving allegations of fraud or improper trade practices that could adversely affect the Kidokinetics system. While this section focuses on actions against the franchisee, it implies that similar actions by the franchisor could be grounds for some form of recourse. Additionally, section 20.9 states that all rights and remedies of Kidokinetics are cumulative and in addition to any other rights or remedies available at law or in equity for any breach or default of the agreement. This suggests that a franchisee might have legal avenues to pursue claims of misrepresentation or deceit beyond what is explicitly stated in the franchise agreement.
Given the absence of a specific clause, a prospective Kidokinetics franchisee should seek clarification from the franchisor regarding the process and potential remedies available if they believe they have been subjected to misrepresentation or deceit. It would be prudent to consult with an attorney to understand their rights and options under applicable laws and the franchise agreement.