Who owns the Confidential Information related to the Hyper Kidz franchise 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.
8.3 Non-Disclosure of Confidential Information
You acknowledge and agree that the Confidential Information is confidential to us and a valuable asset of ours, is proprietary, includes our trade secrets, and is disclosed to you solely on the condition that you, your Principals and your employees who have access to it agree, and you do hereby agree, that during and after the term of this Agreement, you, your Principals and such employees:
- (a) will not use the Confidential Information in any other business or capacity;
- (b) will maintain the absolute secrecy and confidentiality of the Confidential Information;
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, Hyper Kidz retains ownership of all Confidential Information related to the franchise system. This information includes methods, techniques, specifications, standards, policies, procedures, marketing programs, supplier knowledge, agreement terms, operations manual, and sales data.
Hyper Kidz will disclose necessary Confidential Information to the franchisee for operating the Hyper Kidz Business during training and ongoing support. However, the franchisee acknowledges that they do not acquire any ownership interest or right to use the Confidential Information outside of operating their Hyper Kidz Business. Using or duplicating this information in any other business is considered unfair competition.
The franchisee must keep the Confidential Information secret and only disclose it to principals and employees to the extent necessary for business operations. Upon termination or expiration of the franchise agreement, the franchisee must immediately cease using any Confidential Information and return all confidential materials to Hyper Kidz. This obligation ensures that Hyper Kidz maintains control over its proprietary information and protects its competitive advantage.