Which personnel of a Kidokinetics franchisee must sign the Confidentiality and Non-Compete Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Your Manager and your other management level personnel must sign our Confidentiality and Non-Compete Agreement (Franchise Agreement, Attachment F).
Each Principal and each Principal's spouse will personally execute and bind himself or herself to the Guaranty and Confidentiality and Non-Compete Agreement, in the forms of Attachments E and F to this Agreement, respectively.
Your Manager and all other managerial personnel who will have access to our proprietary and Confidential Information and training must sign our Non-Disclosure and Non-Compete Agreement, which is attached to our Franchise Agreement as Attachment F. Additionally, if you are a business entity, all of your officers, directors, and direct and indirect equity holders, and those of any business entity that directly or indirectly controls you must sign the Non-Disclosure and Non-Compete 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, several individuals associated with a franchise are required to sign the Confidentiality and Non-Compete Agreement. Specifically, the franchisee's Manager and other management-level personnel who have access to Kidokinetics's proprietary and confidential information and training must sign this agreement. This ensures that individuals in key positions who are privy to sensitive business information are legally bound to protect it. Attachment F of the Franchise Agreement contains the Confidentiality and Non-Compete Agreement.
Furthermore, if the franchisee is a business entity, all officers, directors, and direct and indirect equity holders, including those of any entity that directly or indirectly controls the franchisee, must also sign the Non-Disclosure and Non-Compete Agreement. This broad requirement aims to prevent the leakage of confidential information across the entire ownership and control structure of the franchisee.
In addition to the above, each Principal and each Principal's spouse must personally execute and bind themselves to the Confidentiality and Non-Compete Agreement. This ensures that the key individuals with a significant stake in the franchise operation are committed to protecting Kidokinetics's confidential information and adhering to the non-compete terms. These measures are typical in franchising to safeguard the brand's trade secrets and competitive advantage.