Under the Kidokinetics Software License Agreement, who are the parties involved besides the Franchisor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
BACKGROUND
- A. Simultaneously with the execution of this Agreement, Franchisor and Franchisee are entering into a franchise agreement ("Franchise Agreement") pursuant to which Franchisor is granting Franchisee the right to operate a Kidokinetics® franchised business ("Franchised Business") under Franchisor's Marks and System.
- B. One of Franchisee's obligations under the Franchise Agreement is to implement such Computer Systems, including all software and hardware, Franchisor requires.
- C. Franchisor's affiliate has developed the KIDOLINK business management software, for which Franchisor has the contractual right to sublicense, to be utilized by Franchisee in connection with the Franchised Business ("KIDOLINK Software"). The KIDOLINK software provides assistance with the management of client leads and data, sales records and documentation, inventory control, marketing efforts, administrative matters, and customer service for Franchisee and Franchisee's employees.
- D. Franchisor may also, from time to time, whether itself or through its designees develop customized software for Franchisee's use in connection with the Franchised Business ("Customized Software"). Franchisee may, at the discretion of Franchisor, be required to purchase and use the Customized Software. Whether Franchisee is required to, or otherwise elects to, use the Customized Software, Franchisee agrees to abide by the terms of this Agreement with regards to any Customized Software. The KIDOLINK Software and Customized Software will be referred to collectively in this Agreement as the "Proprietary Software."
- E. Guarantors agree to personally, and jointly and severally, guaranty Franchisee's obligations and covenants under this Agreement and to be bound by each provision as though each were the Franchisee.
- F. Now, the parties desire to define the terms and conditions on which Franchisor will grant use of the KIDOLINK Software and Customized Software to Franchisee in accordance with the provisions of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, the parties involved in the Software License Agreement, besides the Franchisor, are the Franchisee and the Guarantors.
The Franchisee is granted a license to use the KIDOLINK Software for the duration of the Franchise Agreement, under the terms and conditions outlined in the Software License Agreement. The Franchisee's obligations include implementing required Computer Systems, utilizing the KIDOLINK Software for managing various aspects of the Franchised Business, and adhering to the terms regarding any Customized Software developed by Kidokinetics.
Guarantors also agree to personally, jointly, and severally guarantee the Franchisee's obligations and covenants under the Software License Agreement, binding themselves to each provision as if they were the Franchisee. This ensures that the Franchisor has additional security for the Franchisee's compliance with the agreement's terms.