What must a Hyper Kidz franchisee do before disclosing confidential information in legal proceedings to comply with the agreement?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary contained in this Agreement, and provided you shall have obtained our prior written consent, the restrictions on your disclosure and use of the Confidential Information shall not apply to the following: (a) information, methods, procedures, techniques and knowledge which are or become generally known in the business of the offer and sale of Approved Products and Services and Products in the United States, other than through deliberate or inadvertent disclosure by you; and (b) the disclosure of the Confidential Information in judicial or administrative proceedings to the extent that you are legally compelled to disclose such information, provided you have notified us prior to disclosure and shall have used your best efforts to obtain, and shall have afforded us the opportunity to obtain, an appropriate protective order or other assurance satisfactory to us of confidential treatment for the information required to be so disclosed.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, if a franchisee is legally compelled to disclose confidential information in judicial or administrative proceedings, they must take specific steps to remain in compliance with the franchise agreement. Prior to disclosing any confidential information, the franchisee must first notify Hyper Kidz.
Furthermore, the franchisee is required to use their best efforts to obtain a protective order or another form of assurance that Hyper Kidz finds satisfactory. This protective order would ensure confidential treatment of the information that must be disclosed.
In essence, while franchisees may be legally obligated to disclose confidential information in certain legal contexts, the Hyper Kidz agreement mandates that they proactively inform Hyper Kidz and diligently seek measures to maintain the confidentiality of the information to the greatest extent possible. This protects Hyper Kidz's proprietary information even when disclosure is unavoidable.