What instructions must the Pump It Up franchisee give to employees who have access to the software?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall exercise reasonable precautions, no less rigorous than those Franchisee uses to protect its own Confidential Information, to protect the confidentiality of the Software and the user and operating manuals thereto, which precautions shall include, at a minimum, giving instructions to Franchisee's employees who will have access to the Software and the user and operating manuals thereto that the same are proprietary to, and the trade secrets of, Franchisor or such third parties.
Franchisee shall not remove or alter any designations that Franchisor or such third parties have included in the Software and the user and operating manuals thereto that indicate such material is the proprietary property of Franchisor or such third parties.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, franchisees must instruct their employees who have access to the Pump It Up software and its user manuals that these materials are proprietary and contain the trade secrets of Pump It Up or its third-party licensors. Franchisees must take reasonable precautions, at least as rigorous as those used to protect their own confidential information, to maintain the confidentiality of the software. These precautions include providing clear instructions to employees about the proprietary nature and trade secret status of the software and manuals. Franchisees must also ensure that employees understand the importance of keeping this information confidential.
Pump It Up franchisees are prohibited from removing or altering any proprietary designations included in the software or user manuals by Pump It Up or its third-party licensors. This reinforces the need for franchisees to educate their employees about respecting and maintaining these designations. The franchise agreement emphasizes that the software contains Pump It Up's trade secrets, and franchisees must not communicate, divulge, or use the software in any way other than for operating the Pump It Up system. Access to the software should be limited to only those employees who require it for their job duties within the Pump It Up business.
To further protect the software, Pump It Up franchisees must notify Pump It Up immediately if they become aware of any unauthorized knowledge, possession, or use of the software or any part of it. Franchisees may also be required to have employees sign confidentiality agreements, similar to those in Section 18 of the Franchise Agreement, to ensure they understand and agree to maintain the confidentiality of the software. This multifaceted approach ensures that franchisees take proactive steps to safeguard Pump It Up's valuable trade secrets and proprietary information.
Given the critical importance of protecting the Pump It Up software, franchisees should implement comprehensive training programs and security protocols. These measures should not only cover the proper use of the software but also emphasize the legal and ethical obligations to protect confidential information. Regular audits and monitoring can help ensure that employees are adhering to these guidelines and that the software remains secure from unauthorized access or use.