Upon demand by Kidokinetics Franchisor, how must the Guarantor fulfill the Guaranteed Obligations?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Guarantor acknowledges that Guarantor is included in the term "Franchisee's Principal" as described in the Franchise Agreement.
Guarantor acknowledges that Guarantor has read the terms and conditions of the Franchise Agreement and acknowledges that the execution of this Guaranty and the undertakings of the Franchisee's Principal herein and in the Franchise Agreement are in partial consideration for, and a condition to the granting of, the rights granted in the Franchise Agreement, and that Franchisor would not have granted these rights without the execution of this Guaranty by Guarantor.
Guarantor hereby individually makes, agrees to be bound by, and agrees to perform, all of the covenants, representations, warranties and agreements of the Franc
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, the Guarantor, included in the term "Franchisee's Principal," must adhere to the terms and conditions of the Franchise Agreement. The Guarantor's execution of the Guaranty is a partial consideration for the rights granted in the Franchise Agreement. Kidokinetics would not grant these rights without the Guarantor's agreement.
The Guarantor individually agrees to be bound by and perform all covenants, representations, warranties, and agreements of the Franchisee. This means the Guarantor is personally responsible for ensuring the Franchisee meets all obligations outlined in the Franchise Agreement. This obligation extends to financial responsibilities, operational standards, and adherence to Kidokinetics's system standards.
For a prospective Kidokinetics franchisee, this implies that the Guarantor (often a principal or key individual) takes on a significant personal commitment. They are not merely a passive observer but are actively responsible for the franchise's success and compliance. This arrangement protects Kidokinetics by ensuring a responsible party is fully invested in the franchise's proper operation and adherence to the franchise agreement.