Who is required to sign the Confidentiality and Non-Competition Agreement related to a Hyper Kidz franchise?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
and confidentiality of the Confidential Information;
- (c) will not make unauthorized copies of any portion of the Confidential Information disclosed in written or other tangible form;
- (d) will adopt and implement all reasonable procedures prescribed from time to time by us to prevent unauthorized use or disclosure of or access to the Confidential Information; and
- (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.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to the 2024 Hyper Kidz Franchise Disclosure Document, all Principals and employees who have access to Confidential Information must sign a Confidentiality and Non-Competition Agreement. This includes, but is not limited to, managers and other personnel who attend Hyper Kidz's training programs. Hyper Kidz is a third-party beneficiary of these agreements and has the right to enforce their terms.
The franchisee is responsible for ensuring that all relevant parties execute these agreements. Failure to do so constitutes a material breach of the Franchise Agreement. Hyper Kidz can request executed originals of these agreements at any time.
In the event of a franchise transfer, the transferee and its personnel who will have access to confidential information must also sign the Confidentiality and Non-Competition Agreement. This ensures that Hyper Kidz's confidential information remains protected even when the franchise ownership changes. This requirement is standard practice in franchising to protect the franchisor's trade secrets and competitive advantage.