Under what condition can a Kidokinetics franchisee be exempt from Cooperative membership?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor may grant to Franchisee, in its sole discretion, an exemption for any length of time from the requirement of membership in a Cooperative, upon written request from Franchisee stating reasons supporting such exemption.
Franchisor's decision concerning such request for exemption will be final.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee may be exempt from the requirement of membership in a Cooperative under specific conditions. Kidokinetics, in its sole discretion, can grant an exemption to a franchisee for any length of time.
To be considered for an exemption, the franchisee must submit a written request to Kidokinetics, providing reasons that support the exemption. The decision regarding the exemption request rests entirely with Kidokinetics, and their decision will be final.
This means that while participation in a Cooperative is generally mandatory if one is established for the franchisee's area, a franchisee can seek an exception. However, the franchisee has no guarantee of receiving an exemption, as the decision is at Kidokinetics's discretion. Prospective franchisees should carefully consider this when evaluating the costs and obligations associated with regional advertising and promotional cooperatives.