Must a Kidokinetics Manager sign a Non-Disclosure and Non-Compete Agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, if a franchisee chooses to delegate the day-to-day operations of their Kidokinetics business to a manager, that manager is required to sign a Non-Disclosure and Non-Compete Agreement. This agreement is included as Attachment F to the Franchise Agreement. Furthermore, all managerial personnel who have access to Kidokinetics's proprietary and confidential information and training must also sign this agreement. If the franchisee is a business entity, all officers, directors, and direct/indirect equity holders, including those of any entity that controls the franchisee, must sign the Non-Disclosure and Non-Compete Agreement as well.

This requirement ensures that Kidokinetics's confidential information and trade secrets are protected, as the manager and other key personnel will be exposed to sensitive business practices, training materials, and operational manuals. The Non-Disclosure and Non-Compete Agreement aims to prevent these individuals from using this information to compete with Kidokinetics, either during their tenure or after their departure. This is a common practice in franchising to safeguard the franchisor's business model and proprietary information.

For a prospective Kidokinetics franchisee, this means that if they plan to hire a manager to oversee the daily operations, they must ensure that the manager, along with other relevant personnel, is willing to sign the Non-Disclosure and Non-Compete Agreement. This requirement extends beyond just the manager to include officers, directors, and equity holders if the franchisee is a business entity. The franchisee should carefully review Attachment F of the Franchise Agreement to understand the specific terms and conditions of the Non-Disclosure and Non-Compete Agreement and discuss any concerns with Kidokinetics before signing the agreement.