What is the agreement regarding the use of Intellectual Property in any way detrimental to Kidokinetics or to the Franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- Know-How and Intellectual Property: Non-disclosure and Ownership. You agree: (i) you will not use the Intellectual Property in any business or capacity other than for the benefit of the Kidokinetics Business operated by Franchisee or in any way detrimental to us or to the Franchisee; (ii) you will maintain the confidentiality of the Intellectual Property at all times; (iii) you will not make unauthorized copies of documents containing any Intellectual Property; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Intellectual Property; and (v) you will stop using the Intellectual Property immediately if you are no longer an employee, independent contractor, agent, representative, or supplier of Franchisee. You further agree that you will not use the Intellectual Property for any purpose other than performing your duties for Franchisee and within the scope of your employment or other engagement with Franchisee.
The Intellectual Property is and shall continue to be the sole property of Kidokinetics Franchise LLC. You hereby assign and agree to assign to us any rights you may have or may acquire in such Intellectual Property. Upon the termination of your employment or engagement with Franchisee, or at any time upon our or Franchisee's request, you will deliver to us or to Franchisee all documents and data of any nature pertaining to the Intellectual Property, and you will not take with you any documents or data or copies containing or pertaining to any Intellectual Property.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics FDD, the franchise agreement strictly prohibits franchisees from using Kidokinetics' intellectual property in any manner that could harm the brand or the franchisee's own business. The franchisee agrees not to use the Intellectual Property in any business or capacity other than for the benefit of the Kidokinetics Business operated by Franchisee or in any way detrimental to Kidokinetics or to the Franchisee. This includes safeguarding the confidentiality of the intellectual property, preventing unauthorized copies, and adhering to any reasonable steps requested by Kidokinetics to prevent unauthorized use or disclosure.
The agreement emphasizes that all intellectual property remains the sole property of Kidokinetics Franchise LLC, and franchisees must assign any rights they might acquire in it to Kidokinetics. Upon termination of the franchise agreement, franchisees must return all documents and data pertaining to the intellectual property.
Furthermore, franchisees are prohibited from taking any actions that could undermine the validity of Kidokinetics' intellectual property rights. Unauthorized use of the intellectual property is considered an infringement of Kidokinetics' rights and constitutes a default under the agreement. Franchisees must also assist Kidokinetics in protecting its intellectual property by providing necessary documents and assistance for registration, maintenance, and enforcement. Kidokinetics retains the right to substitute different marks if necessary, and franchisees must comply with these changes at their own expense.