What is included in the 'Confidential Information' related to the operation of the Hyper Kidz System?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Works and/or for you to use one or more additional or substitute copyrighted or copyrightable items, you agree to immediately comply with our directions to modify or otherwise discontinue the use of the copyrighted materials and/or to use one or more substitute materials.
ARTICLE 8: CONFIDENTIAL INFORMATION
8.1 Definition of "Confidential Information"
We possess and will further develop and acquire "Confidential Information" including, but not limited to, the following categories of information, methods, techniques, procedures, and knowledge developed or to be developed by us, our Affiliates and/or franchisees:
- (a) methods, techniques, specifications, standards, policies, procedures, information, concepts and systems relating to and knowledge of and experience in the development, operation, and franchising of Hyper Kidz Businesses;
- (b) marketing and promotional programs for Hyper Kidz Businesses;
- (c) knowledge of specifications for and knowledge of suppliers of certain materials, equipment and fixtures for Hyper Kidz Businesses;
- (d) the terms of this Agreement;
- (e) the Operations Manual; and
- (f) all data relating to the sales and operations of your Hyper Kidz Business.
8.2 Disclosure of Confidential Information
We will disclose such parts of the Confidential Information as are required for the operation of a Hyper Kidz Business to you during training and in guidance and assistance furnished to you during the term of this Agreement, and you may learn or otherwise obtain from us additional Confidential Information during the term of this Agreement. You acknowledge and agree that neither you nor any other person or entity will acquire any interest in or right to use the Confidential Information, other than your right to utilize it in the operation of the Hyper Kidz Business, and that the use or duplication of the Confidential Information in any other business would constitute an unfair method of competition with us and other Hyper Kidz Business franchisees. You agree to disclose the Confidential Information to your Principals and to employees of the Hyper Kidz Business only to the extent reasonably necessary for the operation of the Hyper Kidz Business.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Confidential Information includes a range of proprietary knowledge and materials essential to the Hyper Kidz system. This encompasses methods, techniques, specifications, standards, policies, procedures, information, concepts, and systems related to the development, operation, and franchising of Hyper Kidz businesses. It also covers marketing and promotional programs, knowledge of specifications for materials, equipment, and fixtures, and the terms of the Franchise Agreement itself.
Furthermore, the definition of Confidential Information extends to the Hyper Kidz Operations Manual and all data relating to the sales and operations of a franchisee's Hyper Kidz Business. Hyper Kidz will disclose necessary parts of this Confidential Information during training and ongoing support, but franchisees only have the right to use it for their franchised business. Franchisees must also ensure their principals and employees only access the Confidential Information to the extent necessary for business operations.
Hyper Kidz emphasizes that this Confidential Information is a valuable asset and includes trade secrets. Franchisees, their principals, and employees must maintain absolute secrecy and confidentiality both during and after the franchise term. They are prohibited from using the information in any other business, making unauthorized copies, or failing to implement procedures to prevent unauthorized access or disclosure. Franchisees must also have their personnel sign confidentiality and non-competition agreements, with Hyper Kidz as a third-party beneficiary able to enforce these agreements.