Under what conditions can Kidokinetics refuse a transfer of ownership of a franchise?

According to Kidokinetics's 2024 Franchise Disclosure Document, there are several conditions under which Kidokinetics can refuse a transfer of ownership of a franchise. These conditions are considered "good cause" for refusal.

Kidokinetics may refuse a transfer if the proposed transferee does not meet the then-current reasonable qualifications or standards set by Kidokinetics. This ensures that any new franchisee is capable of maintaining the standards and reputation of the Kidokinetics brand. Another reason for refusal is if the proposed transferee is a competitor of Kidokinetics or its subfranchisor, preventing potential conflicts of interest and protecting proprietary information.

Additionally, Kidokinetics can refuse a transfer if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations. This ensures that the new franchisee is committed to adhering to the terms and conditions of the franchise agreement. Finally, Kidokinetics may refuse a transfer if the current franchisee or the proposed transferee has failed to pay any sums owing to Kidokinetics or has not cured any default in the Franchise Agreement existing at the time of the proposed transfer. This protects Kidokinetics's financial interests and ensures compliance with the agreement.

It is important to note that this does not prevent Kidokinetics from exercising a right of first refusal to purchase the Franchise. This means that Kidokinetics has the option to buy the franchise back before it is transferred to another party, providing them with control over who enters the franchise system.