factual

What section of the Pump It Up Franchise Agreement are the confidentiality covenants substantially similar to?

Pump_It_Up Franchise · 2025 FDD

Answer from 2025 FDD Document

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 the 2025 Pump It Up Franchise Disclosure Document, the confidentiality covenants related to the software license agreement are substantially similar to those found in Section 18 of the Franchise Agreement. This means that the franchisee is obligated to maintain the confidentiality of the software, which contains Pump It Up's trade secrets, both during the term of the software license and after its termination.

Pump It Up requires franchisees to limit access to the software to only those employees who need it for their work within the Pump It Up system. Furthermore, at Pump It Up's request, franchisees must obtain confidentiality agreements from these employees, ensuring they also understand and agree to protect the software's confidential nature. This layered approach helps to safeguard Pump It Up's proprietary information.

The franchisee is expected to take reasonable precautions to protect the confidentiality of the software and its user manuals, at least as rigorous as those used to protect their own confidential information. They are also prohibited from removing or altering any proprietary designations on the software or manuals. Franchisees must immediately notify Pump It Up of any unauthorized knowledge, possession, or use of the software.

Pump It Up emphasizes that the software and manuals are valuable property and trade secrets, and any violation of the software license could cause irreparable harm to Pump It Up. Therefore, Pump It Up is entitled to seek injunctive relief against any such violations, in addition to any other legal remedies available. The term of the software license is directly tied to the term of the Franchise Agreement, ensuring that confidentiality obligations remain in effect throughout the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.