What activities are considered 'Prohibited Activities' for a Kidokinetics franchisee?

According to Kidokinetics's 2024 Franchise Disclosure Document, "Prohibited Activities" are specifically defined in relation to unfair competition. These activities include: owning, operating, or having any interest in a Competitive Business (with a minor exception), diverting business away from Kidokinetics, and inducing Kidokinetics customers to transfer their business elsewhere.

Specifically, a franchisee is prohibited from owning, operating, or having any interest in a Competitive Business. The only exception to this is owning an interest of five percent (5%) or less in a publicly-traded company that is a Competitive Business. This restriction aims to prevent franchisees from directly competing with Kidokinetics using the franchisor's resources and brand recognition.

Additionally, franchisees are prohibited from diverting or attempting to divert any business from Kidokinetics, its affiliates, or other franchisees. This prevents franchisees from taking actions that would intentionally undermine the Kidokinetics network. Lastly, franchisees cannot induce or attempt to induce any customer of Kidokinetics, its affiliates, or other franchisees to transfer their business to the franchisee themselves or to any other person not affiliated with the Kidokinetics franchise system. This protects the customer base and ensures that franchisees are not actively poaching clients from within the system.