What level of confidentiality is Hyper Kidz requiring franchisees to maintain regarding confidential information?

According to Hyper Kidz's 2024 Franchise Disclosure Document, franchisees must maintain "absolute secrecy and confidentiality" regarding the brand's Confidential Information. This obligation extends both during and after the term of the Franchise Agreement. Confidential Information includes methods, techniques, specifications, standards, policies, procedures, information, concepts, systems, marketing and promotional programs, knowledge of suppliers, the terms of the Franchise Agreement, the Operations Manual, and all data relating to the sales and operations of the Hyper Kidz Business.

Hyper Kidz franchisees are permitted to disclose Confidential Information only to their Principals and employees to the extent reasonably necessary for operating the Hyper Kidz Business. Franchisees must also ensure that their Principals and employees with access to Confidential Information execute Confidentiality and Non-Competition Agreements. Failure to obtain these agreements constitutes a material breach of the Franchise Agreement.

Franchisees are prohibited from using the Confidential Information in any other business or capacity and from making unauthorized copies of the information. They must also implement reasonable procedures to prevent unauthorized use, disclosure, or access to the Confidential Information.

There are limited exceptions to these restrictions. The confidentiality restrictions do not apply to information that becomes generally known in the business of offering and selling approved products and services, unless the franchisee deliberately or inadvertently disclosed it. Disclosure of Confidential Information may also be permitted in judicial or administrative proceedings if legally compelled, provided Hyper Kidz is notified and given the opportunity to obtain a protective order.