Under what condition is an agreement or amendment binding upon either party in the Kidokinetics franchise agreement?

Based on the 2024 Kidokinetics Franchise Disclosure Document, the franchise agreement becomes binding when both parties provide consideration in the form of mutual promises, commitments, and understandings. This means that both Kidokinetics as the franchisor and the franchisee must agree to the terms outlined in the agreement.

For a prospective franchisee, this implies that once the agreement is signed and consideration is exchanged, both parties are legally obligated to fulfill their respective duties and responsibilities as detailed in the franchise agreement. This includes Kidokinetics providing the license to operate a franchise and the franchisee adhering to the operational standards and payment schedules.

Additionally, in the context of assigning the franchise to a new franchisee, the agreement is binding upon receipt of the Franchisor's Assignment Fee from the former franchisee and the mutual execution of the agreement by all parties involved. This condition ensures that all parties—the franchisor, the former franchisee, and the new franchisee—are in agreement and have met the necessary financial obligations before the transfer of rights occurs. The new franchisee is also required to execute a New Franchise Agreement, further solidifying their commitment and understanding of the franchise terms.

Furthermore, in the event of the franchisee's death or permanent disability, the agreement can be transferred to an heir or successor, provided they are capable of fulfilling the franchise requirements and agree to sign a Personal Guaranty. This ensures the continuity of the Kidokinetics business under the terms of the original agreement, or allows for a transfer to a third party approved by Kidokinetics, maintaining the integrity and standards of the franchise system.