What specific training, trade secrets, and confidential information will a Kidokinetics franchisee receive?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee and each Principal, if any, specifically acknowledge that, pursuant to this Agreement, Franchisee and each Principal, if any, will receive valuable training, trade secrets and Confidential Information of the System that are beyond the present knowledge, training and experience of Franchisee, each Principal and Franchisee's managers and employees.
Franchisee and each Principal, if any, acknowledge that such specialized training, trade secrets and Confidential Information provide a competitive advantage and will be valuable to them in the development and operation of the Kidokinetics Business, and that gaining access to such specialized training, trade secrets and Confidential Information is, therefore, a primary reason why Franchisee and each Principal, if any, are entering into this Agreement.
In consideration for such specialized training, trade secrets, Confidential Information and rights, Franchisee and each Principal, if any, covenant that, except as otherwise approved in writing by Franchisor:
- 18.5.1.
During the term of this Agreement, Franchisee, each Principal, and the spouse of Franchisee and each Principal if any, shall not, either directly or indirectly, for themselves 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 ("Competing Business"); (iii) do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Marks and the System; or (iv) in any manner interfere with, disturb, disrupt, decrease or otherwise jeopardize the business of the Franchisor or any Kidokinetics franchisees.
- 18.5.2.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, franchisees and principals will receive valuable training, trade secrets, and confidential information that are beyond their current knowledge and experience. This specialized training and information provide a competitive advantage in developing and operating the Kidokinetics business.
The confidential information includes methods, processes, customer lists, vendor partnerships, sales and technical data, costs, service prices, software tools, website and email design, products, services, equipment, technologies, and procedures. It also encompasses systems of operation, services, programs, policies, standards, techniques, requirements, specifications, the Franchise Operations Manual, advertising and promotion methods, instructional materials, marketing plans, business methods, research, development, and know-how. This information is considered confidential regardless of whether it is specifically designated as such or protected by patent, copyright, or trade secret laws.
Kidokinetics franchisees must protect this confidential information and notify the franchisor immediately if it is divulged in violation of the agreement. Franchisees must also ensure the Franchise Operations Manual is kept current and comply with any new or changed policies. The master copy of the Franchise Operations Manual maintained by Kidokinetics will control in case of any dispute about its contents. Customer lists, credit extension information, customer service purchasing histories and rates, and supplier information are also considered trade secrets and confidential information.