What specific customer information is considered Confidential Information for a Kidokinetics franchise?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee acknowledges and agrees that certain information, including (i) current customer and prospective customer names and addresses, (ii) information about credit extensions to customers, (iii) customer service purchasing histories, (iv) rates charged to customers (subsections (i)-(iv) collectively "Customer Lists"), and (v) sources of suppliers and purchasing arrangements with suppliers, also constitute the trade secrets and Confidential Information of Franchisor.
Neither Franchisee nor any Principal may, during the term of this Agreement or following the expiration or termination of the Agreement, communicate or divulge to, or use for the benefit of, any other person or entity.
Following the expiration or termination of this Agreement, Franchisee or any Principal shall not use for their own benefit, any Confidential Information that may be communicated to Franchisee or any Principal or of which Franchisee or any Principal may be apprised in connection with the operation of the Kidokinetics Business under the terms of this Agreement.
Franchisee and any Principal shall not divulge and make any Confidential Information available to anyone other than those of Franchisee's employees who require the Confidential Information to operate the Kidokinetics Business.
Franchisee and any Principal shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent.
The covenant in this Section 18.2 will survive the expiration, termination or transfer of this Agreement or any interest in the Agreement and be perpetually binding upon Franchisee and each Principal.
- 18.3. Protection of Information.
Franchisee shall take all steps necessary, at Franchisee's own expense, to protect the Confidential Information and immediately notify Franchisor if Franchisee finds that any Confidential Information has been divulged in violation of this Agreement.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics' 2024 Franchise Disclosure Document, several types of customer information are considered trade secrets and Confidential Information. These include current and prospective customer names and addresses, information about credit extensions to customers, customer service purchasing histories, and rates charged to customers. Kidokinetics refers to these collectively as "Customer Lists."
Kidokinetics franchisees and their principals are prohibited from communicating, divulging, or using this Confidential Information for the benefit of any other person or entity during the term of the Franchise Agreement and after its expiration or termination. This restriction ensures that franchisees do not exploit sensitive customer data for their own gain or to the detriment of Kidokinetics.
Furthermore, franchisees must take necessary steps to protect this Confidential Information at their own expense and must immediately notify Kidokinetics if they discover any unauthorized disclosure. This obligation highlights the importance Kidokinetics places on safeguarding customer data and maintaining its competitive advantage. Franchisees are also restricted from copying or reproducing any Confidential Information without prior written consent from Kidokinetics, reinforcing the strict control over proprietary information.