During what periods is a Kidokinetics franchisee prohibited from revealing Confidential Information?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Neither Franchisee nor any Principal may, during the term of this Agreement or following the expiration or termination of the Agreement, communicate or divulge to, or use for the benefit of, any other person or entity.
Following the expiration or termination of this Agreement, Franchisee or any Principal shall not use for their own benefit, any Confidential Information that may be communicated to Franchisee or any Principal or of which Franchisee or any Principal may be apprised in connection with the operation of the Kidokinetics Business under the terms of this Agreement.
Franchisee and any Principal shall not divulge and make any Confidential Information available to anyone other than those of Franchisee's employees who require the Confidential Information to operate the Kidokinetics Business.
Franchisee and any Principal shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent.
The covenant in this Section 18.2 will survive the expiration, termination or transfer of this Agreement or any interest in the Agreement and be perpetually binding upon Franchisee and each Principal.
- 18.3. Protection of Information.
Franchisee shall take all steps necessary, at Franchisee's own expense, to protect the Confidential Information and immediately notify Franchisor if Franchisee finds that any Confidential Information has been divulged in violation of this Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees and their principals are prohibited from communicating, divulging, or using Confidential Information both during the term of the Franchise Agreement and following its expiration or termination. This obligation extends perpetually, meaning it remains in effect indefinitely, even after the franchise relationship ends. Confidential Information includes items such as customer lists, credit extension details, customer service purchasing histories, rates charged to customers, and supplier information and purchasing arrangements.
Kidokinetics requires franchisees to take necessary steps, at their own expense, to protect Confidential Information and to immediately notify Kidokinetics if any Confidential Information is divulged in violation of the agreement. This places a significant responsibility on the franchisee to actively safeguard sensitive business data. Franchisees must also ensure that Confidential Information is only made available to those employees who require it to operate the Kidokinetics business.
Furthermore, franchisees and their principals are prohibited from copying, duplicating, recording, or reproducing any Confidential Information without Kidokinetics's prior written consent. This restriction aims to prevent unauthorized dissemination of proprietary information. The confidentiality covenant survives the expiration, termination, or transfer of the Franchise Agreement, ensuring long-term protection of Kidokinetics's trade secrets and Confidential Information. This perpetual obligation is stricter than some franchise systems, which may limit the confidentiality period to a set number of years post-termination.