Within the 10-year period immediately preceding the application for registration, has any party been the subject of a civil action alleging violation of a franchise law related to Kidokinetics?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ERMS WHICH ARE LESS FAVORABLE THAN THOSE SET FORTH IN THIS FRANCHISE DISCLOSURE DOCUMENT.
- The following is added at the end of Item 3:
With the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark:
- A. No such party has an administrative, criminal or civil action pending against that person alleging: a felony, a violation of a franchise, antitrust or securities law, fraud, embezzlement, fraudulent conversion, misappropriation of property, unfair or deceptive practices or comparable civil or misdemeanor allegations.
- B.
Source: Item 23 — RECEIPT (FDD pages 59–205)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, with the exception of what is stated above, the following applies to the franchisor, its predecessor, a person identified in Item 2, or an affiliate offering franchises under the franchisor's principal trademark. No such party, within the 10-year period immediately preceding the application for registration, has been the subject of a civil action alleging violation of a franchise law.
This statement assures prospective Kidokinetics franchisees that the company and its related parties have not faced civil actions related to franchise law violations in the recent past. This is a positive indicator, suggesting a history of compliance and ethical conduct in their franchising practices.
However, it is important to note the phrase "with the exception of what is stated above." This implies there may be some exceptions or qualifications to this statement elsewhere in the FDD. A potential franchisee should carefully review the entire Item 3 and any related addenda to identify and understand the nature of any such exceptions. Understanding these exceptions is crucial for a complete assessment of the franchisor's litigation history and potential risks.