Is there a specific acknowledgement in the Kidokinetics agreement that the franchisee will receive valuable trade secrets?
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:
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to the 2024 Kidokinetics Franchise Disclosure Document, the franchise agreement includes an acknowledgement that the franchisee and any principals will receive valuable training, trade secrets, and confidential information. The agreement states that this information is beyond the present knowledge, training, and experience of the franchisee, principals, managers, and employees. Kidokinetics considers this specialized training, trade secrets, and confidential information to provide a competitive advantage that is valuable in the development and operation of the Kidokinetics business.
The agreement specifies that gaining access to this specialized training, trade secrets, and confidential information is a primary reason for entering into the franchise agreement. In return for receiving this information, the franchisee and any principals agree to certain non-competition covenants. These covenants likely restrict their ability to engage in similar businesses or disclose confidential information during and after the term of the franchise agreement.
Furthermore, the Kidokinetics agreement emphasizes the importance of protecting the franchisor's confidential information. It states that certain information, such as customer lists, credit extension details, customer service purchasing histories, rates charged to customers, and supplier information, constitutes trade secrets and confidential information. The franchisee is obligated to protect this information and prevent its unauthorized disclosure or use, both during and after the agreement's term. This obligation extends to the franchisee's employees, who should only have access to confidential information necessary for operating the Kidokinetics business.