Does a Pump It Up franchisee acquire any ownership interest in the Confidential Information?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We possess certain confidential information, some of which constitutes trade secrets under applicable law ("Confidential Information"), relating to the development and operation of Pump It Up Businesses. The Confidential Information includes, among other things: site selection criteria, the Manuals, and marketing and advertising programs. You do not acquire any interest in the Confidential Information, other than the right to use the Confidential Information as we specify in operating the Franchised Business during the term of the Franchise Agreement. The Confidential Information is proprietary to us. You cannot use the Confidential Information in any unauthorized manner or disclose it to any third person, except as we may choose to permit, which permission must be given in writing. If we permit you to disclose any Confidential Information to a third party, we can require that the third party sign a confidentiality and nondisclosure agreement in the form we specify.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 45–46)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees do not acquire any ownership interest in the Confidential Information. The Confidential Information includes items such as site selection criteria, manuals, and marketing and advertising programs.
Pump It Up franchisees are only granted the right to use the Confidential Information as specified by the franchisor for operating the franchised business during the term of the Franchise Agreement. The document emphasizes that the Confidential Information remains proprietary to the franchisor.
This means that a franchisee's use of the Confidential Information is strictly limited to the operation of their Pump It Up franchise and any unauthorized use or disclosure to third parties is prohibited unless expressly permitted in writing by the franchisor. The franchisor may also require third parties who receive Confidential Information to sign a confidentiality and nondisclosure agreement.