Under what condition can a Kidokinetics franchisee give Confidential Information to a third party?

According to Kidokinetics's 2024 Franchise Disclosure Document, a franchisee may not copy or give confidential information to a third party unless Kidokinetics authorizes it in writing prior to any dissemination. This restriction applies during the initial term, any renewal term, or after the franchise agreement expires or is terminated.

This means that as a Kidokinetics franchisee, you are strictly prohibited from sharing any confidential information about the business with anyone outside of your organization without explicit written consent from Kidokinetics. Confidential information includes, but is not limited to, methods, processes, customer lists, vendor partnerships, sales and technical information, costs, product prices and names, software tools and applications, website and/or email design, products, services, equipment, technologies and procedures relating to the operation of the Kidokinetics Business; systems of operation, services, programs, products, procedures, policies, standards, techniques, requirements and specifications which are part of the System; the Franchise Operations Manual; methods of advertising and promotion; instructional materials; marketing plans, business methods, research, development or know-how, any other information which Kidokinetics may or may not specifically designate as "confidential" or "proprietary", and the components of the System whether or not such information is protected or protectable by patent, copyright, trade secret or other proprietary rights.

The FDD also states that the franchisee's manager and other management-level personnel must sign a Confidentiality and Non-Compete Agreement. This underscores the importance Kidokinetics places on protecting its confidential information and trade secrets. Franchisees must also take necessary steps, at their own expense, to protect the confidential information and immediately notify Kidokinetics if they find that any confidential information has been divulged in violation of the agreement.

This level of confidentiality is typical in franchising, as franchisors need to protect their proprietary systems and methods. Prospective franchisees should carefully consider these restrictions and ensure they are comfortable with the limitations on sharing information about the Kidokinetics business.