What must the Fly Fitness Franchisee do if the Manual is stolen or lost?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
rademarks, including, the registered trademark "Fly Fitness" and design mark, and certain | | | proprietary products, services, promotions, | and methods (the "System") for the establishment and | | operation of Franchised Business outlets; | | WHEREAS, in connection with his or her duties, it will be necessary for Covenantor to have access to some or all of the confidential information, knowledge, know-how, techniques, contents of the Fly Fitness operations manual and other materials used in or related to the System and/or concerning the methods of operation of the System (collectively referred to as "Confidential Information").
WHEREAS, the Confidential Information provides economic advantages to Franchisor and licensed users of the System, including Franchisee;
WHEREAS, Franchisee has acknowledged the importance of restricting the use, access and dissemination of the Confidential Information, and Franchisee therefore has agreed to obtain from Covenantor a written agreement protecting the Confidential Information and further protecting the System against unfair competition; and
WHEREAS, Covenantor acknowledges that receipt of and the right to use the Confidential Information constitutes independent valuable consideration for the representations, promises and covenants made by Covenantor herein.
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained herein, the parties agree as follows:
1. Confidentiality Agreement.
- a. Covenantor shall, at all times, maintain the confidentiality of the Confidential Information and shall use such Confidential Information only in the course of his or her employment by or association with Franchisee in connection with the operation of a Franchised Business under the Franchise Agreement.
- b. Covenantor shall not at any time make copies of any documents or compilations containing some or all of the Confidential Information without Franchisor's express written permission.
- c. Covenantor shall not at any time disclose or permit the disclosure of the Confidential Information except, and only then to the limited extent necessary, to those employees of Franchisee for training and assisting such
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
Based on the 2024 Fly Fitness Franchise Disclosure Document, the operations manual contains confidential information, and franchisees are responsible for protecting it. While the document does not explicitly state the steps a franchisee must take if the manual is stolen or lost, it emphasizes the importance of controlling access to and dissemination of the confidential information within the manual. Covenantors, such as employees, must agree to protect this information.
Given this emphasis on confidentiality, a Fly Fitness franchisee should likely report a lost or stolen manual to the franchisor immediately. This would allow Fly Fitness to assess the potential security risks and advise the franchisee on necessary actions to mitigate any potential damage. These actions might include notifying relevant parties, changing security protocols, or implementing additional training for employees.
Although the FDD does not detail the specific procedures for a lost or stolen manual, it is reasonable to assume that Fly Fitness would expect franchisees to take proactive steps to protect the confidential information. A prospective franchisee should ask Fly Fitness about the specific protocols to follow in such a situation to ensure they are prepared to handle such an event appropriately.