What security measures must a Kidokinetics franchisee use to maintain the confidentiality of the Proprietary Software?

According to Kidokinetics's 2024 Franchise Disclosure Document, franchisees must use the latest available firewall and similar technology to prevent unauthorized access to computer and telecommunications networks. This is a minimum requirement, and Kidokinetics may specify additional security measures in the Franchise Operations Manual. Franchisees are also responsible for reporting any theft or loss of the Franchise Operations Manual, or any portion thereof, immediately to Kidokinetics.

Kidokinetics requires franchisees to participate in any System-wide computer network, intranet system, or extranet system that Kidokinetics implements. Franchisees may be required to use these systems for submitting reports, viewing the Franchise Operations Manual, downloading advertising materials, communicating with Kidokinetics and other franchisees, and completing training. Franchisees must use these systems in strict compliance with the standards, protocols, and restrictions that Kidokinetics includes in the Franchise Operations Manual, including those related to the encryption of confidential information and prohibitions against the transmission of libelous, derogatory, or defamatory statements.

Franchisees must also maintain adequate hardware and software to access the Internet at the speed required by Kidokinetics and maintain an electronic mail account with an Internet service provider acceptable to Kidokinetics. Franchisees are required to read all electronic mail related to the Kidokinetics Business on a daily basis and acknowledge receipt of all electronic mail sent by Kidokinetics. Franchisees are prohibited from establishing any website or other listing on the Internet except as specifically permitted by Kidokinetics.

These measures are designed to protect Kidokinetics's confidential information and maintain the integrity of the Kidokinetics system. Failure to comply with these requirements could result in penalties or termination of the franchise agreement. Prospective franchisees should carefully review the Franchise Operations Manual and the franchise agreement to understand their obligations regarding the confidentiality of the Proprietary Software and other confidential information.