During my association with the Kidokinetics business, can I divert business from other Kidokinetics franchisees to a competitor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- a. In order to protect the goodwill and unique qualities of the System, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants that during Covenantor's association with the Kidokinetics Business, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
- (i) divert, or attempt to divert, any business or customer of the Kidokinetics Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise:
- (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any youth fitness business or any other business offering any other goods or services offered or authorized for sale by System franchisees (a "Competing Business").
- b. In further consideration for the disclosure to Covenantor of the Confidential Information and to protect the goodwill and unique qualities of the System, Covenantor further agrees and covenants that, upon the termination of Covenantor's association with the Kidokinetics Business and continuing for twenty-four months, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
- (i) divert, or attempt to divert, any business or customer of the Kidokinetics Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise;
- (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in Competing Business within a twenty (20) mile radius of the perimeter of (a) the Territory or (b) any other Territory licensed by Franchisor as of the date of expiration or termination of this Agreement;
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, you are prohibited from diverting business or customers to a competitor during your association with the Kidokinetics business. This restriction is in place to protect the goodwill and unique qualities of the Kidokinetics system.
Specifically, as a Kidokinetics franchisee, you agree not to divert or attempt to divert any business or customer of Kidokinetics or other franchisees in the system to any competitor, whether through direct or indirect means. Additionally, you cannot participate as an owner, partner, director, officer, employee, consultant, or agent in any youth fitness business or any other business offering goods or services that are offered or authorized for sale by Kidokinetics franchisees.
These covenants are designed to prevent unfair competition and protect the confidential information and trade secrets that Kidokinetics provides to its franchisees. These restrictions apply during the term of your franchise agreement. After the termination of your franchise agreement, similar restrictions apply for a period of twenty-four months within a twenty (20) mile radius of your territory or any other territory licensed by Kidokinetics.