Who is perpetually bound by the confidentiality covenant in Section 18.2 of the Kidokinetics Franchise Agreement?

According to the 2024 Kidokinetics Franchise Disclosure Document, the confidentiality covenant outlined in Section 18.2 of the Franchise Agreement is perpetually binding upon the franchisee and each principal involved in the franchise. This means that the obligations to maintain confidentiality extend indefinitely, even after the franchise agreement expires, terminates, or is transferred.

This perpetual obligation has significant implications for anyone considering a Kidokinetics franchise. Franchisees and their principals must understand that their duty to protect confidential information, including customer lists, supplier information, and operational methods, continues forever. This restriction can impact their future business activities, as they are permanently barred from using this information for their own benefit or disclosing it to others, even after they are no longer associated with the Kidokinetics franchise.

The perpetual nature of this covenant is stricter than typical non-disclosure agreements in franchising, which often have time limits. Prospective franchisees should carefully consider this long-term restriction and seek legal advice to fully understand its implications. They should also inquire about the specific types of information considered confidential and the potential consequences of violating this covenant.