What is the relationship between the Owners and the Kidokinetics franchise?

for the establishment and operation of Kidokinetics Business:

WHEREAS, Franchisor has granted Franchisee the right to operate a Kidokinetics Business pursuant to the System in a territory, as specifically defined in Attachment B of the Franchise Agreement (the "Territory"), in strict accordance with the terms and conditions of the Franchise Agreement(s);

WHEREAS, in connection with his or her duties, it will be necessary for Covenantor to have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Kidokinetics operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information");

WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System;

WHEREAS, Franchisor and Franchisee have agreed on the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from Covenantor a written agreement protecting the Confidential Information and further protecting the System against unfair competition; and

WHEREAS, Covenantor acknowledges that receipt of and the right to use the Confidential Information constitutes independent valuable consideration for the representations, promises and covenants made by Covenantor herein.

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:

1. Confidentiality Agreement.

• a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall use such Confidential Information only in the course of his or her association with the Kidokinetics Business operating under the Franchise Agreement(s). Such association includes any employment, contract, or other relationship that provides access to Confidential Information of the System.
• b. Covenantor shall not, at any time, make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.

• c. Covenantor shall not, at any time, disclose or permit the disclosure of the Confidential Information except, and only then to the limited extent necessary, to those employees and/or agents of Franchisee for training and assisting such employees and/or in the operation of the Kidokinetics Business.
• d. Covenantor shall surrender any material containing some or all of the Confidential Information to Franchisee or Franchisor, upon request, or upon termination of employment or association with the Kidokinetics Business.
• e. Covenantor shall not, at any time, directly or indirectly, do any act or omit to do any act that would or would likely be injurious or prejudicial to the goodwill associated with the System.
• f. Covenantor agrees that no Confidential Information may be reproduced, in whole or in part, without Franchisor's written consent.

2. COVENANTS NOT TO COMPETE.

• a. In order to protect the goodwill and unique qualities of the System, and in consideration for the disclosure to Covenantor of the Confidential Information, Covenantor further agrees and covenants that during Covenantor's association with the Kidokinetics Business, Covenantor shall not, for Covenantor or through, on behalf of or in conjunction with any person or entity:
  • (i) divert, or attempt to divert, any business or customer of the Kidokinetics Business or of other franchisees in the System to any competitor, by direct or indirect inducement or otherwise:
  • (ii) participate as an owner, partner, director, officer, employee, consultant or agent or serve in any other capacity in any youth fitness business or any other business offering any other goods or services offered or authorized for sale by System franchisees (a "Competing Business").
• b.

Source: Item 22 — CONTRACTS (FDD page 59)