Under what circumstances can a Kidokinetics Covenantor disclose Confidential Information?

According to Kidokinetics's 2024 Franchise Disclosure Document, a Covenantor, typically an employee or agent, is restricted from disclosing Confidential Information related to the Kidokinetics business. However, there is an exception. The Covenantor can disclose Confidential Information to employees or agents of the franchisee, but only to the extent necessary for training and assisting them in the operation of the Kidokinetics business. This allowance ensures that staff can be properly trained to maintain the standards and operations of the franchise.

This exception is narrowly defined, emphasizing that disclosure should be limited to what is strictly necessary for training and operational assistance. This suggests that franchisees and their employees need to be cautious about the extent of information shared, even within their own team. Any broader dissemination of Confidential Information would violate the confidentiality agreement and potentially harm the Kidokinetics system.

Additionally, the confidentiality agreement stipulates that no Confidential Information may be reproduced without the franchisor's written consent. This further restricts the ability to share or distribute information, even for internal purposes, without explicit approval from Kidokinetics. This requirement protects the franchisor's proprietary information and ensures that franchisees do not inadvertently compromise the confidentiality of the Kidokinetics system.

It's also important to note that upon request or termination of employment or association with the Kidokinetics business, the Covenantor must surrender any material containing Confidential Information to the franchisee or franchisor. This obligation reinforces the temporary and conditional nature of access to Confidential Information, highlighting the importance of safeguarding proprietary assets both during and after association with the Kidokinetics franchise.