Does Hyper Kidz require all Principals and employees with access to Confidential Information to execute Confidentiality and Non-Competition Agreements?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) will require all Principals and all employees and Principals who will have access to Confidential Information, including, without limitation, managers and other personnel who attend our training programs, to execute Confidentiality and Non-Competition Agreements in the form attached hereto as Attachment 9. We shall be a third-party beneficiary of such agreements with the independent right to enforce their terms. You shall provide, at our request, executed originals of each such Confidentiality and Non-Competition Agreement. Failure to procure execution of a Confidentiality and Non-Competition Agreement shall be a material breach of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, Hyper Kidz requires all Principals and all employees who will have access to Confidential Information to execute Confidentiality and Non-Competition Agreements. This includes, without limitation, managers and other personnel who attend Hyper Kidz's training programs. Hyper Kidz is a third-party beneficiary of such agreements and has the independent right to enforce their terms.
This requirement ensures that sensitive business information remains protected. Failure to procure execution of a Confidentiality and Non-Competition Agreement is considered a material breach of the Franchise Agreement. The franchisee must provide executed originals of these agreements to Hyper Kidz upon request.
This is a fairly standard practice in franchising, as franchisors need to protect their trade secrets and operational methods. Prospective Hyper Kidz franchisees should carefully review the form of Confidentiality and Non-Competition Agreement attached to the FDD to understand the scope of these restrictions.