Is a Pump It Up franchisee obligated to maintain the confidentiality of the System Standards?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
We own and control the distinctive plan for the establishment, operation and promotion of the Pump It Up Business and all related licensed methods of doing business, previously referred to as the ("System Standards"). System Standards may regulate and/or provide suggested specifications, best practices, standards, operating procedures, general guidance, ongoing advice, and consultation to you on any one or more of the following with respect to the Pump It Up Business: franchised site, premises, leasehold improvements, interior finish, interior décor, furnishings, equipment, products, product formulas, supplies, materials, inventory type, technical equipment standards, client relations, marketing techniques, written promotional materials, waivers, advertising, accounting systems, and service delivery methods, all of which constitute our confidential trade secrets. You acknowledge that we have valuable rights in and to such trade secrets. You further acknowledge that you have not acquired any right, title or interest in the System Standards except for the right to use the System Standards in the operation of the Pump It Up Business as it is governed by your Franchise Agreement, and that you are obligated to maintain the confidentiality of the System Standards.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees are indeed obligated to maintain the confidentiality of the System Standards. The System Standards encompass the distinctive plan for establishing, operating, and promoting the Pump It Up Business, including licensed methods of doing business. These standards cover a wide array of aspects, such as site specifications, premises, leasehold improvements, interior design, equipment, products, marketing techniques, and service delivery methods. Pump It Up considers these System Standards to be confidential trade secrets.
As a Pump It Up franchisee, you acknowledge that Pump It Up possesses valuable rights to these trade secrets. Your rights are limited to using the System Standards solely for operating your Pump It Up Business, as governed by the Franchise Agreement. This means you cannot disclose or use the System Standards for any other purpose outside of your franchised business.
Pump It Up retains the right to modify the System Standards and will communicate any changes through online manuals, newsletters, or other written means. Franchisees are expected to implement these updates. The manuals themselves are also considered confidential information. This obligation to maintain confidentiality is a common practice in franchising, as it protects the franchisor's proprietary information and competitive advantage.