Under what conditions can the restrictions on disclosing Hyper Kidz Confidential Information be waived?
Hyper_Kidz Franchise · 2024 FDDAnswer from 2024 FDD Document
If you have obtained our prior written consent, the restrictions on the 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 indoor recreation business within the Designated Territory, other than through deliberate or inadvertent disclosure by you; and (b) the disclosure of the Confidential Information in judicial or administrative proceedings if you are legally compelled to disclose this information, provided you have notified us in writing before disclosure and used your best efforts to obtain, and 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 disclosed.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–40)
What This Means (2024 FDD)
According to Hyper Kidz's 2024 Franchise Disclosure Document, there are specific conditions under which the restrictions on disclosing and using confidential information can be waived. These conditions require Hyper Kidz's prior written consent.
The first condition is if the information, methods, procedures, techniques, and knowledge become generally known in the indoor recreation business within the franchisee's designated territory, provided this did not occur through the franchisee's deliberate or inadvertent disclosure. This means that if the information is already publicly available through sources other than the franchisee, the restrictions may not apply.
The second condition involves judicial or administrative proceedings. If a franchisee is legally compelled to disclose confidential information in such proceedings, the restrictions are waived if the franchisee notifies Hyper Kidz in writing before the disclosure. Additionally, the franchisee must use their best efforts to obtain a protective order or other assurance that the information will be treated confidentially, and afford Hyper Kidz the opportunity to obtain such an order themselves. This ensures Hyper Kidz has a chance to protect its confidential information even when disclosure is legally required.