What must a Kidokinetics franchisee do if they discover a loss or theft of the Proprietary Software?

According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee experiences a loss or theft of the Franchise Operations Manual, or any portion thereof, including access via computer or telecommunications networks, they must report it immediately to Kidokinetics. The franchisee must, at a minimum, use the latest available firewall and similar technology to prevent unauthorized access in the case of computer and telecommunications networks.

This requirement ensures that sensitive information contained within the Franchise Operations Manual remains protected. The manual contains trade secrets, systems of operation, and other confidential information crucial to the Kidokinetics business model. Prompt reporting allows Kidokinetics to take necessary steps to mitigate any potential damage resulting from the loss or theft, such as changing access codes or monitoring for unauthorized use of the information.

For a prospective Kidokinetics franchisee, this means maintaining robust security measures for all access points to the Franchise Operations Manual, especially electronic ones. It also means having a clear procedure in place for reporting any loss or theft immediately to Kidokinetics. Failure to do so could result in a breach of the franchise agreement and potential penalties.