Can a Kidokinetics Manager have an interest or business relationship with any of Kidokinetics' competitors?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You or, if the franchisee is an entity, the majority shareholder or owner of the franchisee must devote personal full-time attention and best efforts to the management and operation of the Kidokinetics Business, or you may delegate the day-to-day operation of your Kidokinetics Business to a Manager ("Manager"). If the Franchisee is an entity and the owner(s) elect to hire a Manager, then a shareholder or owner of the franchisee must dedicate a minimum of 20 hours per month to the operation of the Kidokinetics Business. You and the Manager, if different from you, must successfully complete our initial training program and all other training courses we require. You may not appoint a Manager who is not you or a principal of the Franchisee, if an entity, without our approval. The Manager must devote his or her full time and best efforts to the job, cannot have an interest or business relationship with any of our competitors, and must meet our then-current standards for Managers before assuming the position. If you are a business entity, each owner must sign a Personal Guaranty. Spouses are required to sign a Personal Guaranty. The Personal Guaranty is attached to our Franchise Agreement as Attachment E.
Your Manager and all other managerial personnel who will have access to our proprietary and Confidential Information and training must sign our Non-Disclosure and Non-Compete Agreement, which is attached to our Franchise Agreement as Attachment F. Additionally, if you are a business entity, all of your officers, directors, and direct and indirect equity holders, and those of any business entity that directly or indirectly controls you must sign the Non-Disclosure and Non-Compete Agreement.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD page 39)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, a Kidokinetics Manager is prohibited from having an interest or business relationship with any of Kidokinetics' competitors. Specifically, the FDD states that the Manager must devote his or her full time and best efforts to the job and cannot have an interest or business relationship with any of Kidokinetics' competitors.
This restriction is in place to protect Kidokinetics' interests and prevent conflicts of interest. It ensures that the Manager is fully dedicated to the success of the Kidokinetics franchise and is not influenced by competing businesses. This requirement is fairly standard in franchising, as franchisors want to ensure that managers are focused on their brand and not diverting resources or information to competitors.
Furthermore, the FDD states that the Manager must meet Kidokinetics' then-current standards for Managers before assuming the position. This suggests that Kidokinetics has specific criteria and qualifications that Managers must meet, which may include experience, skills, and knowledge related to the youth fitness industry. Prospective franchisees should inquire about these standards to ensure that their chosen Manager meets Kidokinetics' requirements.
In addition to the restriction on competitive interests, the Kidokinetics FDD also requires the Manager and all other managerial personnel who will have access to Kidokinetics' proprietary and Confidential Information and training to sign a Non-Disclosure and Non-Compete Agreement. This agreement further protects Kidokinetics' confidential information and prevents the Manager from competing with Kidokinetics during and after their employment.