Under what circumstances is the Waiver and Release of Claims required for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
e at any time.
EXHIBIT H-1
KIDOKINETICS FRANCHISE
SAMPLE GENERAL RELEASE AGREEMENT
WAIVER AND RELEASE OF CLAIMS
This Waiver and Release of Claims ("Release") is made as of ___________________________________
WHEREAS, Franchisor and Franchisee have entered into a Franchise Agreement ("Agreement") pursuant to which Franchisee was granted the right to own and operate a Kidokinetics business;
WHEREAS, (Franchisee has notified Franchisor of its desire to transfer the Agreement and all rights related thereto, or an ownership interest in Franchisee, to a transferee/enter into a successor franchise agreement/amend the Agreement) or (the Agreement is being terminated/or indicate other reason for the requirement of this waiver and release), and Franchisor has consented to such (transfer/successor franchise agreement/amendment/termination/other reason); and
WHEREAS, as a condition to Franchisor's consent to (transfer the Agreement/enter into a successor franchise agreement/amend the Agreement/terminate the Agreement/other reason), Releasor has agreed to execute this Release upon the terms and conditions stated below.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a "Waiver and Release of Claims" is required under specific circumstances related to changes in the franchise agreement or the franchisee's business. This release is documented as a "Sample General Release Agreement" within Exhibit H-1 of the FDD.
The "Waiver and Release of Claims" is required when a franchisee notifies Kidokinetics of their desire to transfer the Franchise Agreement, transfer ownership interest, enter into a successor franchise agreement, or amend the existing agreement. It is also required if the agreement is being terminated, or for any other reason that necessitates the waiver and release. The franchisor's consent to these actions is conditional upon the franchisee (Releasor) executing this release.
In practical terms, this means that if a Kidokinetics franchisee decides to sell their franchise, renew their agreement under different terms, or end their agreement early, they will likely need to sign this waiver. This protects Kidokinetics from potential future claims related to the franchise agreement or its termination. Prospective franchisees should carefully review the terms of the "Waiver and Release of Claims" to understand the full scope of their liabilities and rights when such situations arise.