If the Kidokinetics franchisee is a business entity, who else besides the Manager must sign the Non-Disclosure and Non-Compete Agreement?

According to Kidokinetics' 2024 Franchise Disclosure Document, if the franchisee is a business entity, several individuals beyond the Manager are required to sign the Non-Disclosure and Non-Compete Agreement. Specifically, all of the entity's officers, directors, and direct and indirect equity holders must sign the agreement. This requirement extends to the officers, directors, and direct and indirect equity holders of any business entity that directly or indirectly controls the franchisee.

This stipulation ensures that all individuals with significant influence or access to Kidokinetics' confidential information are bound by the terms of the Non-Disclosure and Non-Compete Agreement. This is a common practice in franchising to protect the franchisor's trade secrets, operational methods, and other proprietary information. By requiring these individuals to sign the agreement, Kidokinetics aims to prevent the unauthorized disclosure or use of its confidential information, which could harm the franchise system.

For a prospective Kidokinetics franchisee operating as a business entity, this means carefully identifying all individuals who fall under these categories and ensuring they are willing to sign the agreement. Failure to comply with this requirement could potentially lead to legal issues or jeopardize the franchise agreement. It is important to fully understand the implications of this requirement and seek legal counsel if necessary to ensure compliance.