What does Fitstop consider as 'Confidential Information' related to the Franchise System?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
purview to determine and to ensure that you are in compliance with federal, state, and local laws.
Section 7: Confidential Information and Non-Disclosure
- 7.1 We have expended and continue to expend significant time and resources developing in connection with the Franchise System certain brand standards, confidential information, and know-how relating to the administration and operation of a franchised businesses including all systems, processes, procedures, software, databases, logos, manuals, advertising information and promotional materials ("Confidential Information"). Such Confidential Information includes, but is not limited to, (i) our Manual(s), forms, the information contained and compiled therein, and the updates and memoranda thereto; (ii) training information and methodology; (iii) advertising plans and methodology; (iv) names of contractual arrangements with agents, suppliers, and customers, and their requirements, specifications, and preferences; (v) the contractual arrangements with agents, suppliers, and customers; (vi) the financial details (including but not limited to credit and discount terms) of relationships with our agents, suppliers, or customers; (vii) the names of prospective customers and their requirements, specifications, and preferences; (ix) the software; (x) information concerning and presented at our seminars, conferences, or conventions; (xi) security access information; (xii) information provided through initial and supplementary training; and (xiii) our business plans and strategies, names of agents, suppliers, and customers and their requirements, specifications, and preferences.
- 7.2 You acknowledge that we own all proprietary rights in and to the Confidential Information, in its entirety, and that the Confidential Information constitutes our confidential trade secrets. Without our prior written consent, you shall not disclose the Confidential Information to any person, except employees of the Franchise for purposes related solely to the operation of the Franchise, nor shall you reprint or reproduce any Confidential Information we may provide to you, in whole or in part, for any purpose except in connection with instruction of employees in the operation of the Franchise. You acknowledge that any Confidential Information we provide to you or your employees will at all times be and remain our property.
- 7.3 You acknowledge that, whether or not we denote, label, or mark the Confidential Information as confidential you shall treat the Confidential Information as confidential and should take the utmost precautions to ensure that neither you or any of your employees disseminate it to the public.
- 7.4 You acknowledge that any materials, concept, process, or improvement you develop in the operation or promotion of the Franchise will at all times be and remain our property. You agree to give us prompt notice of and all necessary information related to such development(s).
- ©2024 Fitstop USA, Inc. 7.5 We claim property rights in all the information about the operational, sales, promotional methods and techniques, and marketing methods and techniques of the Franchise System. 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;
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, Confidential Information encompasses brand standards, confidential information, and know-how related to the administration and operation of franchised businesses. This includes systems, processes, procedures, software, databases, logos, manuals, advertising information, and promotional materials.
Specifically, Fitstop considers its Manual(s), forms, the information within them, and any updates as confidential. Training and advertising methodologies, contractual arrangements with agents, suppliers, and customers, including their requirements and financial details, also fall under this category. Furthermore, the names of prospective customers, software, information presented at seminars and conferences, security access information, initial and supplementary training materials, and business plans and strategies are deemed confidential.
Fitstop emphasizes that all proprietary rights to Confidential Information belong to them and constitute trade secrets. Franchisees are prohibited from disclosing this information to anyone, except to their employees for the sole purpose of operating the Franchise, without prior written consent from Fitstop. Franchisees also cannot reproduce any Confidential Information for purposes other than employee instruction.
All lists, files, and compilations of information, whether marked as confidential or not, are considered confidential and remain Fitstop's exclusive property, even if the franchisee develops them. Franchisees must provide Fitstop with customer lists and contract copies upon request and must not disclose trade secrets or confidential information about the Franchise or Franchise System, maintaining its secrecy and confidentiality. Any unauthorized dissemination of this information will result in immediate default of the Franchise Agreement.