Under what condition can a Hyper Kidz franchisee disclose confidential information in judicial or administrative proceedings?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary contained in this Agreement, and provided you shall have obtained our prior written consent, the restrictions on your disclosure and use of the Confidential Information shall not apply to the following: (a) information, methods, procedures, techniques and knowledge which are or become generally known in the business of the offer and sale of Approved Products and Services and Products in the United States, other than through deliberate or inadvertent disclosure by you; and (b) the disclosure of the Confidential Information in judicial or administrative proceedings to the extent that you are legally compelled to disclose such information, provided you have notified us prior to disclosure and shall have used your best efforts to obtain, and shall have afforded us the opportunity to obtain, an appropriate protective order or other assurance satisfactory to us of confidential treatment for the information required to be so disclosed.
Source: Item 22 — CONTRACTS (FDD page 52)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, a franchisee can disclose confidential information in judicial or administrative proceedings if they are legally compelled to do so. However, there are conditions that must be met before disclosing the information.
First, the franchisee must notify Hyper Kidz prior to the disclosure. This allows Hyper Kidz to be aware of the situation and prepare accordingly. Second, the franchisee must use their best efforts to obtain an appropriate protective order. This protective order would ensure confidential treatment for the information that is required to be disclosed.
In essence, while Hyper Kidz acknowledges that legal requirements may sometimes necessitate the disclosure of confidential information, they require franchisees to take proactive steps to minimize the potential harm of such disclosures by seeking protective orders and keeping Hyper Kidz informed.