Does the non-compete agreement with Kidokinetics prevent me from diverting customers to a competitor during my association with the Kidokinetics business?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
t, without Franchisor's written consent.
2. COVENANTS NOT TO COMPETE.
- a. In order to protect the goodwill and unique qualities of the System, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants that during Covenantor's association with the Kidokinetics Business, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
- (i) divert, or attempt to divert, any business or customer of the Kidokinetics Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise:
- (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any youth fitness business or any other business offering any other goods or services offered or authorized for sale by System franchisees (a "Competing Business").
- b.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, the non-compete agreement does address the diversion of customers to competitors during your association with the Kidokinetics business. Specifically, while associated with the Kidokinetics business, you are prohibited from diverting or attempting to divert any business or customer of Kidokinetics or other franchisees in the system to any competitor. This includes any direct or indirect inducement.
This restriction is designed to protect the goodwill and unique qualities of the Kidokinetics system. It ensures that franchisees are fully committed to growing their Kidokinetics business and not undermining the brand by diverting customers elsewhere. This type of clause is standard in franchise agreements to maintain brand consistency and protect the customer base that contributes to the success of all franchisees within the system.
Additionally, the agreement states that during the term of the agreement, the franchisee, each principal, and their spouses cannot divert or attempt to divert any business or customer of Kidokinetics to any competitor through direct or indirect means. They also cannot participate in any youth fitness business or any business offering goods or services that are offered by Kidokinetics franchisees. This further emphasizes the commitment expected from franchisees and their immediate family members to avoid any competitive activities during their association with Kidokinetics.