factual

Does the Pump It Up definition of 'Confidential Information' include trade secrets?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

al business information including, but not limited to the information contained in the Pump It Up operations manuals (the "Manuals"). Applicant and Employees recognize the importance of maintaining the confidentiality of this information.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Applicant and Employees agree as follows:

1. CONFIDENTIAL INFORMATION

  • A. Definition of Confidential Information. As used in this Agreement, the term "Confidential Information" means all information that has been created, discovered or developed by PIU and that is in any way proprietary to PIU. Confidential Information includes, but is not limited to, trade-secrets, knowhow, methodologies, System information, technical information, statistics, software, hardware, materials, plans, designs, schematics, reports, studies, notes, analyses, summaries, business, market and development plans, customer lists and other information regarding customer relationships, financial information and projections, artwork, information regarding the manner and methods of locating a site for, developing, operating and promoting Pump It Up Facilities, information contained in the Manuals, information regarding the retail and commercial operations of PIU and its affiliates, and all information that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy. Confidential Information may be provided or exist in written form or obtained orally.
  • B. Exclusion from Definition of Confidential Information.

Source: Item 23 — RECEIPTS (FDD pages 60–225)

What This Means (2025 FDD)

According to Pump It Up's 2025 Franchise Disclosure Document, the definition of "Confidential Information" explicitly includes trade secrets. The agreement states that confidential information encompasses all proprietary information created, discovered, or developed by PIU. This includes, but is not limited to, trade secrets, know-how, methodologies, system information, technical information, statistics, software, hardware, materials, plans, designs, schematics, reports, studies, notes, analyses, summaries, business, market and development plans, customer lists and other information regarding customer relationships, financial information and projections, artwork, information regarding the manner and methods of locating a site for, developing, operating and promoting Pump It Up Facilities, information contained in the Manuals, information regarding the retail and commercial operations of PIU and its affiliates, and all information that: (1) derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use; and (2) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.

Pump It Up emphasizes the importance of maintaining the confidentiality of this information, recognizing its value in the franchise system. Franchisees and their employees are required to treat this information as confidential and are restricted from disclosing it to unauthorized parties. This obligation extends to using the information solely for evaluating the franchise opportunity and, if a franchise agreement is not pursued, the confidentiality obligations remain in effect for a specified period. The FDD also states that the System Standards constitute confidential trade secrets.

This broad definition of Confidential Information, including trade secrets, highlights the importance Pump It Up places on protecting its proprietary assets and maintaining a competitive advantage. Prospective franchisees should carefully review these confidentiality obligations and understand the restrictions on using or disclosing this information, both during the franchise evaluation process and throughout the term of the franchise agreement. Franchisees must acknowledge that Pump It Up has valuable rights to these trade secrets and that they have not acquired any right to them except for the right to use the System Standards in the operation of the Pump It Up Business as it is governed by this Agreement and that it is obligated to maintain the confidentiality of the System Standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.