Under what circumstances will a Kidokinetics franchisee sign the State Addendum?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee will sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements if their state requires modifications to the standard franchise agreement. These addenda are designed to ensure compliance with specific state laws that may differ from the standard terms outlined in the main agreement. The State Addendum takes precedence over conflicting terms in the Franchise Disclosure Document, Franchise Agreement, and other specified agreements. This ensures that the franchise operation adheres to the legal requirements of the franchisee's specific state.

Prospective Kidokinetics franchisees should carefully review the State Addendum applicable to their state, as it contains important modifications to the standard franchise terms. These modifications can cover a range of issues, such as franchise law, waivers, and dispute resolution. Understanding these state-specific requirements is crucial for franchisees to protect their rights and ensure they are operating in full compliance with local laws.

For example, the FDD mentions specific addenda for California and Rhode Island. In California, the addendum addresses issues such as franchise investment law, waivers, website review, interest rates for late payments, and revisions to certain sections of the Franchise Agreement. In Rhode Island, the addendum addresses restrictions on jurisdiction or venue to a forum outside the state. These examples highlight the importance of carefully reviewing the State Addendum to understand the specific legal requirements in the franchisee's state.

It is important for prospective franchisees to seek legal counsel to fully understand the implications of the State Addendum and how it affects their rights and obligations under the Franchise Agreement. This will help them make informed decisions and avoid potential legal issues in the future.