Under what circumstances can the Kidokinetics franchisor terminate the license to use the KIDOLINK Software?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- (c) Termination by Franchisor.
Franchisor or its designee may terminate the license to use the KIDOLINK Software, as granted herein, upon notice to Franchisee with immediate effect in the event that (i) Franchisee breaches any of its obligations under this Agreement or under the Franchise Agreement, (ii) the Franchise Agreement is terminated, expires, or is not renewed, or (iii) Franchisor requires Franchisee to cease using the KIDOLINK Software, or any or all portions of it, as specified by Franchisor.
Unless notified to discontinue use, Franchisee agrees to continue to use the KIDOLINK Software and any updated versions of it as long as Franchisor requires it.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor can terminate the KIDOLINK Software license under several circumstances. The license terminates automatically if the Franchise Agreement expires, is not renewed, or is terminated. Additionally, Kidokinetics can terminate the license with immediate effect if the franchisee breaches any obligations under the software agreement or the Franchise Agreement. Kidokinetics can also terminate the license if it requires the franchisee to stop using the KIDOLINK Software, or any part of it.
Kidokinetics may include a feature in the KIDOLINK Software that will cause the KIDOLINK Software to automatically cease to operate in whole or in part if the franchisee materially breaches the agreement, the Franchise Agreement, or fails to submit required reports, pay required fees, or pay the Royalty Fee or any other amounts due to Kidokinetics under the Franchise Agreement in a timely manner.
If a third party claims that the MOBILNK Software infringes any U.S. patent, copyright, or trade secret, Kidokinetics may elect, in its sole discretion, to defend Franchisee against such claim at Franchisor's expense and pay all damages that a court finally awards. If such a claim is made or appears possible, Kidokinetics may, at its option, secure for Franchisee the right to continue to use the KIDOLINK Software or modify or replace the KIDOLINK Software so that it is non-infringing. If neither of the foregoing options is available in Kidokinetics's judgment, Kidokinetics may terminate the license granted by this Agreement and require Franchisee to return the KIDOLINK Software without compensation.
Upon termination of the license, the franchisee must return or dispose of all physical copies of the KIDOLINK Software and documentation as instructed by Kidokinetics and remove all copies from their computers and storage media. The franchisee will not receive any refund of payments made to Kidokinetics upon termination or disabling of the software.