What discretion does Kidokinetics have regarding litigation involving copyrighted works or confidential information?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
During the term of the Franchise Agreement, you may have access to and become acquainted with our trade secrets, including, but not limited to, methods, processes, customer lists, vendor partnerships and/or relationships, sales and technical information, costs, product prices and names, software tools and applications, website and/or email design, products, services, equipment, technologies and procedures relating to the operation of the Kidokinetics Business; systems of operation, services, programs, products, procedures, policies, standards, techniques, requirements and specifications which are part of the System; the Franchise Operations Manual; methods of advertising and promotion; instructional materials; marketing plans, business methods, research, development or know-how, any other information which we may or may not specifically designate as "confidential" or "proprietary", and the components of our System whether or not such information is protected or protectable by patent, copyright, trade secret or other proprietary rights (collectively called the "Confidential Information"). You agree that you will take all reasonable measures to maintain the confidentiality of all Confidential Information in your possession or control and that all such Confidential Information and trade secrets shall remain our exclusive property. You may never (during the initial term, any renewal term, or after the Franchise Agreement expires or is terminated) reveal any of our
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2024 FDD)
The 2024 Kidokinetics Franchise Disclosure Document outlines several ways that Kidokinetics protects its confidential information and copyrighted works. Franchisees gain access to Kidokinetics' trade secrets, operational systems, and confidential information, which are crucial for running their Kidokinetics business. This access is contingent upon maintaining strict confidentiality, as franchisees must take all reasonable measures to protect this information. They are prohibited from revealing confidential information to others or using it for any purpose outside the Kidokinetics business, and they cannot copy or distribute it without prior written authorization from Kidokinetics. This obligation extends to the franchisee's managers and other personnel, who are required to sign a Confidentiality and Non-Compete Agreement. These measures ensure that Kidokinetics retains exclusive ownership and control over its proprietary assets.
Kidokinetics emphasizes the importance of keeping confidential information secure, not only during the franchise term but also after the agreement expires or is terminated. Franchisees must notify Kidokinetics immediately if they discover any breaches of confidentiality. Furthermore, any improvements or new concepts developed by the franchisee in the performance of services or operation of the Kidokinetics business must be promptly disclosed to Kidokinetics, which then gains full proprietary rights to these improvements. This clause ensures that Kidokinetics benefits from any advancements made within the franchise network.
The Confidentiality Agreement included in the FDD states that individuals accessing confidential information, such as employees or contractors, must maintain its confidentiality and use it only in connection with the Kidokinetics business. They are prohibited from making unauthorized copies and must return all materials containing confidential information upon request or termination of their association with the business. Additionally, they cannot take any actions that would harm the goodwill associated with the Kidokinetics system. These comprehensive confidentiality measures underscore Kidokinetics' commitment to protecting its intellectual property and maintaining a competitive advantage within the children's fitness market.