What does the term 'Know-how' encompass within the Kidokinetics franchise agreement?

According to Kidokinetics's 2024 Franchise Disclosure Document, 'Know-how' is defined as all of Kidokinetics's trade secrets and other proprietary information related to the development, construction, marketing, and/or operation of a Kidokinetics business. This includes, but is not limited to, methods, techniques, specifications, proprietary practices and procedures, policies, marketing strategies, and information comprising the System and the Manual. The System refers to Kidokinetics's system for establishing, developing, operating, and managing a Kidokinetics business, including Know-how, proprietary programs and products, the Manual, and the operating system. The Manual is Kidokinetics's confidential operations manual for operating a Kidokinetics business.

For a prospective franchisee, this means that the 'Know-how' represents a significant portion of what they are licensing from Kidokinetics. It is the accumulated knowledge and expertise that Kidokinetics has developed over time, which is essential for running a successful franchise. This proprietary information gives Kidokinetics a competitive advantage in the children's fitness market.

The franchisee is required to maintain the confidentiality of the Know-how and can only use it for the benefit of their Kidokinetics business. They are also prohibited from making unauthorized copies of documents containing any Know-how. This obligation extends not only to the franchisee but also to their employees, independent contractors, agents, representatives, or suppliers. This ensures that the Know-how remains protected and is not disclosed to unauthorized parties, safeguarding the Kidokinetics system and brand.