What steps must a Fly Fitness franchisee take to protect confidential information?
Fly_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee and any Principal shall not at any time copy, duplicate, record or otherwise reproduce any Confidential Information, 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.
The covenant in this Section 19.2 shall survive the expiration, termination or transfer of this Agreement or any interest herein and shall be perpetually binding upon Franchisee and each Principal.
- 19.3.
Protection of Information.
Franchisee shall take all steps necessary, at Franchisee's own expense, to protect the Confidential Information and shall immediately notify Franchisor if Franchisee finds that any Confidential Information has been divulged in violation of this Agreement.
- 19.4.
New Concepts.
If Franchisee or any Principal develops any new concept, process, product, method, or improvement in the operation or promotion of the Franchised
Source: Item 22 — CONTRACTS (FDD pages 44–45)
What This Means (2024 FDD)
According to Fly Fitness's 2024 Franchise Disclosure Document, franchisees play a crucial role in safeguarding the brand's confidential information. Franchisees must get a written agreement protecting the Confidential Information from anyone who will have access to confidential information. This agreement ensures that individuals accessing this information understand its importance and agree to protect it from unauthorized use or disclosure. Franchisees are responsible for ensuring that these individuals act in accordance with the agreement.
Fly Fitness franchisees must take necessary actions to protect confidential information at their own expense and must immediately inform Fly Fitness if they discover any confidential information has been revealed against the agreement. Franchisees and any principals are prohibited from copying, duplicating, recording, or reproducing any confidential information without prior written consent from Fly Fitness. They are only allowed to share it with authorized individuals. This obligation to protect confidential information extends beyond the termination or transfer of the Franchise Agreement, remaining perpetually binding on the franchisee and any principals involved.
To further protect Fly Fitness's interests, franchisees and their principals are subject to non-competition covenants. During the term of the agreement, they cannot divert business or customers to competitors, nor can they participate in any similar fitness or exercise business. These restrictions also apply for twenty-four months after the agreement expires or terminates, within a ten-mile radius of the franchisee's territory or any Fly Fitness location. These measures aim to prevent franchisees from using confidential information gained during their affiliation with Fly Fitness to unfairly compete against the brand after their departure.