How does the Kidokinetics System Protection Agreement define 'Franchisee'?

According to Kidokinetics' 2024 Franchise Disclosure Document, the System Protection Agreement defines "Franchisee" as the specific Kidokinetics franchisee for which the manager or officer subject to the agreement is working. This definition is important for understanding the scope and applicability of the System Protection Agreement.

This definition clarifies that the agreement applies to managers or officers of a Kidokinetics franchise, and it is designed to protect Kidokinetics' interests by preventing unfair competition and maintaining confidentiality. The agreement ensures that those with access to Kidokinetics' confidential information and system knowledge are bound by specific obligations to protect the brand.

For a prospective Kidokinetics franchisee, this means that their managers and officers will be required to sign this agreement, acknowledging their responsibilities to protect Kidokinetics' intellectual property and system. This agreement is part of Kidokinetics' strategy to maintain brand consistency and prevent the dissemination of proprietary information, which is a common practice in franchising to protect the franchisor's business model and competitive advantage.

The System Protection Agreement also includes clauses related to unfair competition, both during and after the individual's association with the Kidokinetics franchise. It also addresses the actions of immediate family members, further emphasizing the importance Kidokinetics places on safeguarding its system and intellectual property.