What is a Pump It Up franchisee prohibited from doing with the Confidential Information?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Limited Use. Applicant and Employees shall use the Confidential Information solely for the purpose of evaluating whether or not Applicant will invest in a Pump It Up franchise. Neither Applicant nor Employees shall make any other use of the Confidential Information. If Applicant does not invest in a Pump It Up franchise, the obligations set forth in this Section 2 will remain in effect for a period of 12 months from the date Applicant elects not to pursue such a franchise relationship. Within 12 months after the date Applicant elects not to pursue a franchise relationship with PIU, if Applicant or any Employee opens and operates a business whose method of operation or trade dress is similar to that of a Pump It Up Business or the System, a violation of this Agreement will be presumed.
- B. No Disclosure. Applicant and Employees shall not disclose the Confidential Information to any person or entity other than Applicant's attorney or accountant as necessary to evaluate the opportunity provided by PIU. Applicant and Employees agree to protect the Confidential Information against unauthorized disclosure using the same degree of care, but no less than a reasonable degree of care, as Applicant and Employees use to protect Applicant's confidential information.
- C. No Use, Copying or Transfer. Applicant and Employees shall not use, copy or transfer Confidential Information in any way and shall protect the Confidential Information against unauthorized use, copying or transfer using the same degree of care, but no less than a reasonable degree of care, as Applicant and Employees use to protect Applicant's confidential information. This prohibition against use, copying, or transfer of Confidential Information includes, but is not limited to, selling, licensing or otherwise exploiting, directly or indirectly, any products or services which embody or are derived from Confidential Information. Applicant and Employees further agree not to remove, overprint, or deface any notice of copyright, trademark, logo, or other notices of ownership from any Confidential Information.
- D. Applicability. These covenants shall apply to all Confidential Information disclosed to Applicant or Employees by PIU at any time, including prior to the date of this Agreement.
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, both the applicant and their employees face several restrictions regarding the use, disclosure, and handling of confidential information. These restrictions are in place both during the evaluation phase of a potential franchise and, with some differences, after a franchise agreement is signed.
Specifically, applicants and their employees are prohibited from using the confidential information for any purpose other than evaluating the Pump It Up franchise opportunity. They cannot disclose this information to anyone except their attorney or accountant, and they must protect the information from unauthorized disclosure with a reasonable degree of care. Furthermore, applicants and employees are barred from using, copying, or transferring the confidential information in any way, including selling, licensing, or exploiting products or services derived from it. They also cannot remove or alter any copyright, trademark, or ownership notices from the confidential information.
These restrictions apply to all confidential information disclosed by Pump It Up, even before any formal agreement is in place. If an applicant decides not to pursue a franchise, these obligations remain in effect for 12 months. During this period, opening a similar business could be presumed as a violation of the agreement. If Pump It Up decides not to offer a franchise, the applicant must cease using the confidential information and return all copies.
These measures are designed to protect Pump It Up's proprietary information and maintain its competitive advantage. Franchisees should understand these restrictions and ensure their employees are also aware of them to avoid potential legal issues.