Is there a Confidentiality and Non-Compete Agreement included as an attachment to the Hyper Kidz Franchise Agreement?
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, a Confidentiality and Non-Competition Agreement is included as Attachment 9 to the Franchise Agreement. Hyper Kidz requires all Principals and employees who have access to Confidential Information to sign this agreement. This includes managers and other personnel who attend Hyper Kidz's training programs.
The franchisee is responsible for ensuring that these individuals execute the agreement. Hyper Kidz is a third-party beneficiary of these agreements and has the right to enforce their terms. The franchisee must provide executed originals of these agreements to Hyper Kidz upon request. Failure to obtain the execution of the Confidentiality and Non-Competition Agreement is considered a material breach of the Franchise Agreement.
This requirement is fairly standard in franchising, as franchisors need to protect their confidential information and trade secrets. The agreement ensures that those with access to sensitive information are legally bound to protect it, both during and after their association with the Hyper Kidz franchise. The non-compete aspect further protects Hyper Kidz by preventing individuals from using their knowledge gained from the franchise to compete against it.