Is a Kidokinetics franchisee allowed to divulge Confidential Information to anyone other than their employees who require it to operate the business?

According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees are generally prohibited from divulging Confidential Information to anyone other than their employees who need it to operate the Kidokinetics business. This restriction applies both during the term of the Franchise Agreement and after its expiration or termination. Franchisees must also take necessary steps to protect Confidential Information and promptly notify Kidokinetics if they discover any unauthorized disclosure. This obligation extends not only to the franchisee but also to any principals involved in the business. The Franchise Operations Manual, written directives from Kidokinetics, and any other materials are to be treated as confidential and are only to be made available to employees who require the information to operate the Kidokinetics business. Franchisees are also prohibited from copying or reproducing these materials without prior written consent from Kidokinetics.

Confidential Information includes, but is not limited to, methods, processes, customer lists, vendor partnerships, sales and technical information, costs, service prices, software tools and applications, website and email design, products, services, equipment, technologies, procedures, systems of operation, services, programs, procedures, policies, standards, techniques, requirements, specifications, the Franchise Operations Manual, methods of advertising and promotion, instructional materials, marketing plans, business methods, research, development, know-how, and components of the System. This broad definition underscores the importance Kidokinetics places on protecting its proprietary information.

The confidentiality obligations are reinforced through a sample Confidentiality Agreement that Kidokinetics requires its franchisees to implement with their employees, independent contractors, agents, representatives, or suppliers. This agreement further restricts the disclosure of Confidential Information, ensuring that it is used only to the extent necessary for training and assisting in the operation of the Kidokinetics business. The agreement also mandates the surrender of any materials containing Confidential Information upon request or termination of employment or association with the Kidokinetics business. These measures collectively aim to safeguard Kidokinetics's trade secrets and maintain the integrity of its System.