Does Fitstop consider the names of prospective customers to be confidential information?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
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; (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.
All such lists, files, other compilations of
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, the names of prospective customers are considered confidential information. Fitstop claims proprietary trade secret rights in information like lists and files, and other compilations of information pertaining to the Franchise System, which includes the names of prospective customers and their requirements, specifications, and preferences.
This means that as a Fitstop franchisee, you must treat the names of prospective customers as confidential and take precautions to prevent dissemination to the public. This obligation extends to your employees as well. Fitstop retains ownership of this information, even if you compile or develop it in connection with your franchise.
Furthermore, upon Fitstop's request, you must provide a list of all customers you are servicing and copies of their respective contracts. You are prohibited from using or communicating any trade secrets or confidential information about the operation of the Fitstop franchise or system, except as explicitly allowed in the Franchise Agreement. Maintaining the secrecy and confidentiality of this information is crucial, and any unauthorized duplication, copying, or disclosure could result in a default of your Franchise Agreement.
This is a fairly standard practice in franchising, as franchisors need to protect their proprietary information and customer data. Franchisees should ensure they have adequate systems in place to safeguard this information and comply with Fitstop's requirements.