What is the Releasor prohibited from doing regarding the Released Parties' business or reputation according to the Kidokinetics Waiver and Release of Claims?

According to Kidokinetics' 2024 Franchise Disclosure Document, the Releasor is prohibited from making any false representations of facts, or defaming, disparaging, discrediting, or deprecating any of the Released Parties. This extends to communicating with any person or entity in a manner intending to damage any of the Released Parties, their business, or their reputation. This requirement is part of the Nondisparagement clause within the General Release Agreement.

This clause means that a franchisee, upon signing the release, agrees not to make any statements or engage in any communications that could harm Kidokinetics' brand, business relationships, or overall standing. This restriction applies to both factual misrepresentations and opinions that could be seen as damaging. The clause is designed to protect Kidokinetics from negative publicity or reputational harm that could arise from a franchisee's actions, especially in situations where the franchisee is leaving the system or has had a dispute with the company.

For a prospective Kidokinetics franchisee, this highlights the importance of understanding the terms of any release agreement they might be asked to sign. It also underscores the need to maintain professional conduct and avoid making disparaging remarks about the company, even after the franchise relationship ends. Failing to comply with this clause could result in legal repercussions if Kidokinetics believes the franchisee has violated the terms of the release by damaging their reputation or business.