What section of the Pump It Up Franchise Agreement should the confidentiality covenants from employees be similar to?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
At Franchisor's request, Franchisee shall require and obtain execution of covenants concerning the confidentiality of the Software from any persons employed by Franchisee who have access to the Software.
These covenants shall be in a form substantially similar to the confidentiality covenants contained in Section 18 of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to Pump It Up's 2025 Franchise Disclosure Document, if the franchisor requests, the franchisee must obtain confidentiality agreements from employees who have access to the Pump It Up software. These confidentiality agreements must be substantially similar to the confidentiality covenants outlined in Section 18 of the Franchise Agreement.
This requirement ensures that the franchisee's employees are legally bound to protect the franchisor's trade secrets within the software. By referencing Section 18 of the Franchise Agreement, Pump It Up provides a clear standard for the scope and terms of these employee confidentiality agreements. This standardization helps maintain consistency in protecting confidential information across all franchise locations.
For a prospective Pump It Up franchisee, this means understanding the obligations in Section 18 of the Franchise Agreement and ensuring that employee confidentiality agreements align with those terms. It also highlights the importance of protecting the software and trade secrets, as any unauthorized use or disclosure could lead to legal repercussions.