Does the Kidokinetics Confidentiality and Non-Compete Agreement acknowledge that the covenants impose undue hardship on the Covenantor?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
- h. Covenantor acknowledges and agrees that each of the covenants contained herein will not impose any undue hardship on Covenantor since Covenantor has other considerable skills, experience and education which affords Covenantor the opportunity to derive income from other endeavors.
- g. The parties agree that each of the foregoing covenants contained in this Agreement are construed as independent of any other covenant or provision of this Agreement.
- d. If the period of time or the geographic scope specified in Section 2.b. above should be adjudged unreasonable in any proceeding, then the period of time will be reduced by such number of months or the geographic scope will be reduced by the elimination of such portion thereof, or both, so that such restrictions may be enforced for such time and scope as are adjudged to be reasonable. In addition, Franchisor shall have the right, in its sole discretion, to reduce the scope of any covenant set forth in this Agreement or any portion thereof, without Covenantor's or Franchisee's consent, effective immediately upon receipt by Covenantor of written notice thereof, and Covenantor agrees to forthwith comply with any covenant as so modified.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Confidentiality and Non-Compete Agreement explicitly states that the covenants within the agreement will not impose undue hardship on the Covenantor. The agreement acknowledges that the Covenantor possesses other skills, experience, and education that allow them to earn income from other sources. This suggests that Kidokinetics believes the non-compete terms are reasonable and do not unfairly restrict the Covenantor's ability to make a living after their association with Kidokinetics ends.
This acknowledgement is important for prospective franchisees and their employees (Covenantors) because it indicates that Kidokinetics has considered the potential impact of the non-compete agreement on those bound by it. While the agreement aims to protect Kidokinetics's confidential information and business interests, it also recognizes the need to avoid unduly restricting the Covenantor's future employment opportunities. This can provide some reassurance to Covenantors that the non-compete terms are not intended to be overly burdensome.
However, it is crucial for prospective franchisees and Covenantors to carefully review the specific terms of the Confidentiality and Non-Compete Agreement to fully understand the restrictions it imposes. Factors such as the duration of the non-compete period, the geographic scope of the restrictions, and the definition of "Competing Business" can significantly impact the Covenantor's future opportunities. Despite the acknowledgement that the covenants will not impose undue hardship, individual circumstances may vary, and it is advisable to seek legal counsel to assess the enforceability and potential impact of the agreement.
Kidokinetics also states that the parties agree that each of the covenants contained in the agreement are construed as independent of any other covenant or provision of the agreement. If any part of the non-compete is deemed unreasonable, Kidokinetics has the right to reduce the scope of any covenant set forth in the agreement without the consent of the Covenantor or Franchisee. This modification is effective immediately upon written notice.