Can Kidokinetics unilaterally modify the terms of the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, Kidokinetics has the right to modify the Franchise Operations Manual at its sole discretion. Franchisees are required to operate their Kidokinetics business in accordance with this manual. Kidokinetics will notify franchisees of any updates, revisions, modifications, or amendments to the Franchise Operations Manual, and franchisees must comply with these changes within 30 days of notification, bearing all associated expenses.
While Kidokinetics can modify the Franchise Operations Manual, the franchise agreement itself is subject to mutual agreement. The document states that the franchise is granted to the franchisee based on the terms and conditions contained within the agreement. This suggests that fundamental changes to the agreement require both parties' consent.
The Franchise Operations Manual contains trade secrets and confidential information, which franchisees must keep confidential during and after the term of the franchise agreement. This underscores the importance of adhering to the manual's guidelines, as changes to it directly impact how a franchisee must operate their Kidokinetics business. Prospective franchisees should clarify with Kidokinetics what specific elements are subject to change and how those changes might affect their business operations and profitability.
In summary, while Kidokinetics retains the right to update its operational guidelines through the Franchise Operations Manual, the core Franchise Agreement appears to require mutual consent for modifications. Franchisees must stay informed of changes to the manual and adapt their business practices accordingly.