Does Fitstop consider its computer software and coding to be confidential information?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
We claim proprietary trade secret rights in information like lists and files, and other compilations of information pertaining to the Franchise System, which information includes (a) our manuals and forms, the information contained and compiled in the manuals and forms, and the updates and memoranda relating to the manuals and forms; (b) names of our agents, suppliers, and customers, and their requirements, specifications, and preferences; (c) the contractual arrangements between us and our agents, suppliers, and customers; (d) the financial details (including but not limited to credit and discount terms) of our relationship with our agents, suppliers, or customers; (e) the names of prospective customers and their requirements, specifications, and preferences; (f) information concerning the remuneration paid by us to our employees; (g) our computer software and any part of its coding; (h) information concerning and presented at our meetings; (i) security and access information; (j) information provided through initial and ongoing specialized training; (k) our business plans and strategies; and (l) similar information.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Fitstop considers its computer software and coding to be confidential information. The FDD specifies that Fitstop claims proprietary trade secret rights in information pertaining to the Franchise System, which includes "(g) our computer software and any part of its coding."
As a Fitstop franchisee, you must recognize that this software and its coding are considered confidential and proprietary. This means you are obligated to protect this information and prevent its unauthorized disclosure or use. Fitstop retains property rights over this information, reinforcing the need for franchisees to maintain its confidentiality.
This classification as confidential information has important implications. Fitstop can seek injunctive relief in court, without needing to post a bond, to prevent unauthorized use of its proprietary software. This underscores the importance of adhering to the terms of the franchise agreement regarding confidential information to avoid potential legal action. Prospective franchisees should carefully review the sections of the Franchise Agreement that discuss confidential information, trade secrets, and intellectual property to fully understand their obligations.