Under what conditions can a Kidokinetics franchisee delegate day-to-day operations to a manager?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee, or its shareholder or member if Franchisee is an entity, must devote his/her full-time attention and best efforts to the management and operation of the Franchised Business,
or may delegate the day-to-day operations of the Franchised Business to a manager ("Manager"). Franchisee may not appoint a Manager who is not the Franchisee or Principal of the Franchisee, if an entity, without the approval of Franchisor. All requests regarding appointment of a Manager must be in writing. The Manager shall meet Franchisor's standards and criteria, as set forth in the Franchise Operations Manual or otherwise in writing by Franchisor, and will be an individual otherwise acceptable to Franchisor in its sole discretion. The Manager will devote his or her full time and best efforts to the supervision and management of the Kidokinetics Business, and may not engage in any other business activity without the Franchisor's consent, which may be withheld in Franchisor's sole discretion. The Manager will satisfy the training requirements set forth in Article 6. If the Franchised Business is operated by a Manager, then a Principal of Franchisee must devote at least 20 hours of work per month to the operation of the Franchised Business.
- 10.3.1.
If the Manager is not able to continue to serve in such capacity, or no longer qualifies to act as such in accordance with this Agreement, Franchisee will promptly notify Franchisor and request approval for a replacement within 30 days after the Manager ceases to serve, such replacement being subject to the same qualifications required by this Agreement (including, but not limited to, completing all training and obtaining
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee, or its shareholder or member if the franchisee is an entity, must devote their full-time attention and best efforts to managing and operating the franchised business. However, the franchisee can delegate the day-to-day operations to a manager. If the franchisee chooses to appoint a manager who is not the franchisee or a principal of the franchisee (if an entity), they must obtain approval from Kidokinetics.
The request to appoint a manager must be submitted in writing. The manager must meet Kidokinetics's standards and criteria, as detailed in the Franchise Operations Manual or in writing by Kidokinetics, and must be acceptable to Kidokinetics at their sole discretion. The manager is required to devote their full time and best efforts to supervising and managing the Kidokinetics business and cannot engage in any other business activity without Kidokinetics's consent, which may be withheld at their sole discretion. The manager will also need to fulfill the training requirements outlined in Article 6 of the agreement.
Even if the day-to-day operations are managed by a manager, a principal of the Kidokinetics franchisee must still dedicate at least 20 hours of work per month to the operation of the franchised business. If a manager is no longer able to serve or no longer qualifies, the franchisee must promptly notify Kidokinetics and request approval for a replacement within 30 days, with the replacement being subject to the same qualifications, including completing all training and obtaining necessary certifications.