Under what conditions can Kidokinetics unilaterally modify the terms of the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- Franchise Operations Manual.
Franchisor has created and developed special procedures, standards and 8.1. methods for operating and maintaining the Kidokinetics Business, which standards are incorporated into our Franchise Operations Manual.
Franchisor will loan a copy of the Franchise Operations Manual to Franchisee.
The Franchise Operations Manual and other documents are subject to modification from time to time as Franchisor determines, in its sole discretion.
Franchisee agrees to operate the Kidokinetics Business in accordance with the Franchise Operations Manual.
Franchisor will notify Franchisee of updates, revisions, modifications or amendments to the Franchise Operations Manual.
Franchisee must comply with all updates, revisions, modifications or amendments to the Franchise Operations Manual no later than 30 days after notification at Franchisee's sole expense.
The Franchise Operations Manual contains Franchisor's Trade Secrets and other Confidential Information and it shall be kept confidential by Franchisee during the term of the Franchise and subsequent to the expiration and non-renewal, termination, or transfer of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, Kidokinetics can modify the Franchise Operations Manual at its sole discretion. These modifications can include updates, revisions, or amendments. Kidokinetics will notify franchisees of these changes, and franchisees must comply with them within 30 days of notification, bearing all associated expenses.
This clause in the franchise agreement means that Kidokinetics franchisees must stay informed about changes to the operations manual and be prepared to adapt their business practices accordingly. This could involve additional training for staff, changes to service delivery, or new marketing strategies. The franchisee is responsible for covering the costs associated with implementing these changes, which could impact profitability.
Franchisors typically update their operations manuals to reflect changes in industry standards, legal requirements, or best practices. While franchisees are generally expected to comply with these updates, the specific terms for modifications and the franchisee's responsibility for associated costs can vary across different franchise systems. Therefore, prospective Kidokinetics franchisees should carefully consider the potential financial and operational impact of these unilateral changes.
It is important for potential franchisees to understand the scope and frequency of potential changes to the operations manual, as well as the associated costs, before investing in a Kidokinetics franchise. They should also inquire about the process for providing feedback on proposed changes and the extent to which franchisee input is considered.