What is the Fly Fitness franchisee's responsibility regarding the confidentiality of information contained in materials approved by the franchisor?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee shall, prior to disclosure, fully train and inform its employees on all the restrictions, terms, and conditions under which it is permitted to use Franchisor's intellectual, proprietary, and confidential information; and shall ensure its employees' compliance with such restrictions, terms, and conditions.
Franchisee, Principal(s), and any person working with Franchisee shall agree not, at any time to use, copy, duplicate, record or otherwise reproduce these materials, in whole or in part, or otherwise make the same available to any person other than those authorized above, without Franchisor's prior written consent.
- 19.1.3.
The Manual, written directives, and other materials and any other confidential communications provided or approved by Franchisor shall at all times remain the sole property of Franchisor.
Franchisee shall maintain the Manual and all Franchisor's confidential and proprietary materials at all times in a safe and secure location, shall take all reasonable measures to prevent unauthorized access thereto, whether any attempted unauthorized access takes the form of physical access or access via computer or telecommunications networks or otherwise, and shall report the theft or loss of the Manual, or any portion thereof, immediately to Franchisor.
At a minimum, Franchisee shall, in the case of computer and telecommunications networks, use the latest available firewall, encryption and similar technology to prevent unauthorized access.
Franchisee shall delete all electronic copies and return and cease using any physical copy of the Manual and other confidential and proprietary materials to Franchisor immediately upon request or upon transfer, termination, or expiration of this Agreement.
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees have several responsibilities regarding confidential information. Fly Fitness franchisees must fully train and inform their employees about the restrictions, terms, and conditions regarding the use of Fly Fitness's intellectual, proprietary, and confidential information. Franchisees must also ensure that their employees comply with these restrictions. Franchisees and anyone working with them must agree not to use, copy, duplicate, record, or reproduce these materials without Fly Fitness's prior written consent, ensuring that the information is only available to authorized individuals.
Fly Fitness requires franchisees to maintain the operations manual and all confidential materials in a safe and secure location, taking reasonable measures to prevent unauthorized access, whether physical or via computer networks. Franchisees must use the latest available firewall, encryption, and similar technology to prevent unauthorized access through computer and telecommunications networks. Any theft or loss of the manual or its portions must be reported to Fly Fitness immediately.
Upon request, transfer, termination, or expiration of the Franchise Agreement, the Fly Fitness franchisee must delete all electronic copies and return any physical copies of the manual and other confidential materials to Fly Fitness, ceasing their use. This ensures that confidential information remains protected and under the control of Fly Fitness, even after the franchise relationship ends. These measures are typical in franchising to protect the brand's proprietary information and maintain a competitive advantage.