What is the obligation regarding the use of Intellectual Property if someone is no longer associated with a Kidokinetics franchisee?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
You agree: (i) you will not use the Intellectual Property in any business or capacity other than for the benefit of the Kidokinetics Business operated by Franchisee or in any way detrimental to us or to the Franchisee; (ii) you will maintain the confidentiality of the Intellectual Property at all times; (iii) you will not make unauthorized copies of documents containing any Intellectual Property; (iv) you will take such reasonable steps as we may ask of you from time to time to prevent unauthorized use or disclosure of the Intellectual Property; and (v) you will stop using the Intellectual Property immediately if you are no longer an employee, independent contractor, agent, representative, or supplier of Franchisee. You further agree that you will not use the Intellectual Property for any purpose other than performing your duties for Franchisee and within the scope of your employment or other engagement with Franchisee.
The Intellectual Property is and shall continue to be the sole property of Kidokinetics Franchise LLC. You hereby assign and agree to assign to us any rights you may have or may acquire in such Intellectual Property. Upon the termination of your employment or engagement with Franchisee, or at any time upon our or Franchisee's request, you will deliver to us or to Franchisee all documents and data of any nature pertaining to the Intellectual Property, and you will not take with you any documents or data or copies containing or pertaining to any Intellectual Property.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, if an individual is no longer associated with a Kidokinetics franchisee as an employee, independent contractor, agent, representative, or supplier, they must immediately stop using the Kidokinetics Intellectual Property. This includes trademarks, service marks, trade names, logos, copyrights, and proprietary materials related to the Kidokinetics business. This obligation is in place to protect Kidokinetics's brand and system.
Furthermore, upon termination of employment or engagement with the Kidokinetics franchisee, the individual must return all documents and data pertaining to the Intellectual Property to either Kidokinetics or the franchisee. They are prohibited from taking any documents, data, or copies that contain or relate to the Intellectual Property with them. This ensures that confidential information and proprietary materials remain within the Kidokinetics system and are not used for unauthorized purposes.
These restrictions are reinforced by agreements that acknowledge the Intellectual Property's importance and the potential for damage if misused. Immediate family members of individuals associated with a Kidokinetics franchisee are also subject to these restrictions, with a presumption of violation if they use or disclose the Intellectual Property, although this presumption can be rebutted with evidence. Franchisees must also take action to cancel any assumed name registrations that contain Kidokinetics's marks upon termination or expiration of the franchise agreement.