Is a Kidokinetics franchisee allowed to copy Confidential Information?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee and any Principal shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are generally prohibited from copying Confidential Information. The FDD emphasizes the protection of Confidential Information, defining it broadly to include trade secrets, methods, customer lists, vendor partnerships, sales and technical data, costs, software, website design, and the Franchise Operations Manual. Franchisees acknowledge that they will have access to this information and must maintain its confidentiality.
The agreement states that franchisees and their principals cannot copy, duplicate, record, or reproduce any Confidential Information, whether in whole or in part, or make it available to unauthorized individuals without the prior written consent of Kidokinetics. This restriction applies not only during the term of the Franchise Agreement but also after its expiration or termination. This is a standard practice in franchising to protect the franchisor's proprietary information and maintain a competitive advantage.
Kidokinetics requires franchisees to take necessary steps to protect Confidential Information and to immediately notify Kidokinetics if any Confidential Information is divulged in violation of the agreement. Furthermore, the Franchise Operations Manual, which contains critical operational details, must be kept current and secure. In case of disputes regarding the manual's contents, the master copy maintained by Kidokinetics will prevail. This ensures that franchisees adhere to the most up-to-date standards and procedures.
Moreover, any new concepts, processes, or improvements developed by the franchisee in the performance of services or operation of the Kidokinetics business must be promptly reported to Kidokinetics, along with all related information. This clause allows Kidokinetics to integrate valuable innovations into the franchise system, further protecting its intellectual property and maintaining uniformity across all franchise locations.