What is the relationship between the Kidokinetics Confidentiality and Non-Compete Agreement and the Franchise Agreement?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Each shall jointly and severally guarantee Franchisee's performance of all of Franchisee's obligations, covenants and agreements under the Agreement, and otherwise bind themselves to the terms of this Agreement as stated herein, pursuant to the terms and conditions of the Guaranty and Confidentiality and Non-Compete Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the Confidentiality and Non-Compete Agreement is closely tied to the Franchise Agreement. Principals and their spouses are required to personally execute and adhere to the Guaranty and Confidentiality and Non-Compete Agreement, as outlined in Attachments E and F of the Franchise Agreement. This agreement ensures they are bound to the terms of the Franchise Agreement.
The Confidentiality and Non-Compete Agreement aims to protect Kidokinetics's confidential information and system against unfair competition. It acknowledges that franchisees will have access to confidential information, including the contents of the Kidokinetics operations manual, which provides an economic advantage to Kidokinetics. The agreement restricts the use, access, and dissemination of this confidential information, ensuring that it is used only in association with the Kidokinetics business operating under the Franchise Agreement.
Furthermore, the Franchise Agreement emphasizes the importance of maintaining the confidentiality of the Franchise Operations Manual and other proprietary information. Franchisees and their principals must treat the manual and any written directives from Kidokinetics as confidential, preventing unauthorized access or duplication. This obligation extends beyond the term of the franchise, ensuring that trade secrets remain protected even after the agreement expires or is terminated. The Confidentiality and Non-Compete Agreement reinforces these provisions, safeguarding Kidokinetics's competitive advantage and proprietary information.