What happens if Pump It Up requires you to maintain the Manuals as confidential?
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.
We reserve the right to change the System Standards and inform you of any changes in the Manuals accessible to you online via computer systems or another electronic format. The Manuals may be modified, updated and revised from time to time to reflect changes in System Standards. You are expected to implement all relevant updates and amendments to the Manuals or System Standards as described in newsletters or any other notices we distribute through any written means. We reserve the right to require the implementation of any System Standards. You must maintain the Manuals as confidential and maintain the information in the Manuals as secret and confidential. Any form of the Manuals we make accessible to you, regardless of how we provide them (e.g. online or via email) will be deemed our Confidential Information. We will notify you in our Manuals or other communications of System Standards and/or names of PIU Vendors.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 25–29)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, franchisees are required to keep the content of the Manuals confidential. Pump It Up considers the information within these manuals to be trade secrets, and franchisees must not disclose this information. The Manuals provide System Standards, which include suggested specifications, best practices, standards, operating procedures, general guidance, ongoing advice, and consultation. These System Standards cover various aspects of the Pump It Up Business, such as the 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. Franchisees do not acquire any rights to the System Standards, other than using them to operate their Pump It Up Business. Pump It Up reserves the right to change the System Standards and inform franchisees of these changes through online Manuals or other electronic formats.
The Manuals may be updated and revised to reflect changes in System Standards, and franchisees are expected to implement these updates as described in newsletters or other notices. Pump It Up retains the right to require the implementation of any System Standards. Franchisees must maintain the Manuals as confidential and keep the information within them secret. Any form of the Manuals provided, whether online or via email, is considered Pump It Up's Confidential Information. Pump It Up will notify franchisees of System Standards and/or names of PIU Vendors in the Manuals or other communications.
In practical terms, this means a Pump It Up franchisee must take precautions to prevent unauthorized access to the Manuals, whether in physical or electronic form. This could involve measures such as restricting access to the online portal where the Manuals are stored, securing physical copies of the Manuals, and training employees on the importance of maintaining confidentiality. Failure to comply with these confidentiality requirements could result in legal action from Pump It Up, as well as potential damage to the franchise system if trade secrets are compromised.