Under what condition might the 'Restricted Period' for a former Kidokinetics manager or officer be altered?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
ir business to you or to any other person that is not then a franchisee of ours.
- "Restricted Period" means the 24 months-year period after you cease to be a manager or officer of Franchisee's Kidokinetics business; provided, however, that if a court of competent jurisdiction determines that this period of time is too long to be enforceable, then the "Restricted Period" means the
12 months-year period after you cease to be a manager or officer of Franchisee's Kidokinetics business.
Source: Item 22 — CONTRACTS (FDD page 59)
What This Means (2024 FDD)
According to Kidokinetics's 2024 Franchise Disclosure Document, the standard 'Restricted Period' for a former manager or officer is 24 months after leaving their position. However, this period can be altered under specific circumstances.
The 'Restricted Period' may be extended if the former manager or officer engages in 'Prohibited Activities' during the initial 24-month period. In such cases, the restriction is extended by the amount of time the individual was involved in those prohibited activities. 'Prohibited Activities' include owning or working for a competing business, diverting business away from Kidokinetics, or attempting to poach Kidokinetics customers.
Additionally, if a court of competent jurisdiction determines that the 24-month period is too long to be enforceable, the 'Restricted Period' will be shortened to 12 months. This adjustment ensures the non-compete agreement remains reasonable and legally sound.
These stipulations are designed to protect Kidokinetics's interests by preventing unfair competition from former managers or officers who possess knowledge of the company's confidential information and business practices.