Under what conditions will Kidokinetics defend a franchisee against claims related to the use of Confidential Information?
Kidokinetics Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall pay all taxes and other fees owed to any federal, state and local government when due.
- 10.5.
Privacy.
Franchisee agrees to comply with all applicable international, federal, state and local laws pertaining to the privacy of customer, employee, and transactional information ("Privacy Laws").
Franchisee agrees to research and proactively ensure that the Kidokinetics Business is in compliance with Privacy Laws, which may vary by location.
Franchisee also agrees to comply with Franchisor's standards and policies pertaining to Privacy Laws.
If there is a conflict between Franchisor's standards and policies pertaining to Privacy Laws and actual applicable law, Franchisee will: (i) comply with the requirements of applicable law; (ii) immediately give Franchisor written notice of said conflict; and (iii) promptly and fully cooperate with Franchisor and its counsel in determining the most effective way, if any, to meet Franchisee agrees not to publish, disseminate, implement, revise, or rescind a data privacy policy without Franchisor's prior written consent as to said policy.
- 10.6. Claims.
Franchisee will notify Franchisor in writing within three calendar days of the commencement of any action, suit or proceeding and of the issuance of any order, writ, injunction, award or decree of any
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 38–39)
What This Means (2024 FDD)
Based on the 2024 Kidokinetics Franchise Disclosure Document, the document outlines the franchisee's responsibilities regarding confidential information but does not specify the conditions under which Kidokinetics will defend a franchisee against claims related to its use. The FDD emphasizes the franchisee's duty to protect confidential information, notify Kidokinetics of any breaches, and comply with privacy laws. The franchisee is expected to take necessary steps, at their own expense, to safeguard this information.
Item 22 of the FDD details the franchisee's obligations to maintain confidentiality, including protecting customer lists, supplier information, and other trade secrets. It also requires franchisees to ensure their employees who have access to confidential information sign a confidentiality agreement. The franchisee must notify Kidokinetics if they discover any confidential information has been divulged in violation of the agreement.
While the FDD specifies the franchisee's responsibilities for protecting confidential information and reporting potential breaches, it does not detail any specific scenarios or conditions under which Kidokinetics would provide a defense or indemnify the franchisee against claims related to the use of confidential information. A prospective franchisee should seek clarification from Kidokinetics regarding their policies on defending franchisees in such situations, including the types of claims covered, any limitations on coverage, and the process for requesting assistance.
To gain a comprehensive understanding of Kidokinetics's stance on defending franchisees against claims related to the use of confidential information, a prospective franchisee should directly inquire with the franchisor about their specific policies and procedures. This will help clarify the extent of support and protection Kidokinetics offers in such situations.