What obligation does a Pump It Up franchisee have regarding the confidentiality of information in the Manuals?
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 Pump It Up's 2025 Franchise Disclosure Document, franchisees are obligated to maintain the confidentiality of the System Standards, which include the distinctive plan for the establishment, operation, and promotion of the Pump It Up Business. These System Standards are detailed in the Manuals, which may be modified, updated, and revised to reflect changes. Franchisees are expected to implement all relevant updates and amendments described in newsletters or other notices. The franchisor considers any form of the Manuals accessible to the franchisee as Confidential Information, regardless of how they are provided (e.g., online or via email).
Pump It Up franchisees must keep the Manuals confidential and maintain the information within them as secret. This obligation extends to all aspects of the System Standards, including specifications, best practices, operating procedures, and general guidance related to 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. These elements constitute Pump It Up's confidential trade secrets, and franchisees acknowledge that the franchisor has valuable rights to them.
This confidentiality requirement means that a prospective Pump It Up franchisee must understand the importance of protecting the franchisor's proprietary information. They cannot disclose the contents of the Manuals to unauthorized parties, including competitors. This obligation continues for the duration of the franchise agreement and may extend beyond its termination, as specified in the agreement. Franchisees should be prepared to implement security measures to safeguard the Manuals and the information they contain, ensuring that only authorized personnel have access.