Under what conditions can the Kidokinetics franchisor terminate the software license?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- (d) Disabling of the KIDOLINK Software.
Franchisee understands that Franchisor may include a feature in the KIDOLINK Software that will cause the KIDOLINK Software to automatically cease to operate in whole or in part in the event Franchisee materially breaches this Agreement, the Franchise Agreement, or fails in a timely manner to (i) submit to Franchisor the reports required by Franchisor; (ii) pay to Franchisor the required fees under this Agreement; or (iii) pay to Franchisor the Royalty Fee or any other amounts due to Franchisor under the Franchise Agreement.
Franchisor will not be liable to Franchisee for any damages whatsoever that may result directly or indirectly from Franchisor's disabling of the functionality of the KIDOLINK Software pursuant to this Section.
- (e) Disposition of Copies.
Upon termination of the license to use the KIDOLINK Software granted herein Franchisee agrees to promptly return to Franchisor, or otherwise dispose of as Franchisor may instruct, all physical copies of the KIDOLINK Software and its associated documentation in Franchisee's possession or under Franchisee's control and will remove all copies thereof from Franchisee's computers and other electronic storage media.
On Franchisor's request, Franchisee will provide Franchisor with written certification of its compliance with the foregoing.
- (f) No Refunds.
Upon the expiration or termination of the license granted hereby, or if the KIDOLINK Software is disabled as described above, Franchisee will not receive any refund of any payments made to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the franchisor can disable the KIDOLINK Software if the franchisee materially breaches the Franchise Agreement or related agreements. This includes failing to submit required reports, failing to pay required fees, or failing to pay the Royalty Fee or any other amounts due to Kidokinetics under the Franchise Agreement.
Kidokinetics includes a feature in the KIDOLINK Software that will automatically cease operation if such breaches occur. The franchisor states they will not be liable for any damages resulting from disabling the software's functionality under these conditions.
Upon termination of the KIDOLINK Software license, the franchisee must promptly return or dispose of all physical copies of the software and documentation as instructed by Kidokinetics. The franchisee must also remove all copies from their computers and electronic storage media and provide written certification of compliance upon request. The franchisee will not receive any refund of payments made to Kidokinetics if the license expires, terminates, or if the KIDOLINK Software is disabled.