What standard should a Pump It Up franchisee use to protect the software?
Pump_It_Up Franchise · 2025 FDDAnswer from 2025 FDD Document
are only to those of its employees who must have access to it in connection with their employment in the System. 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.
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 60–225)
What This Means (2025 FDD)
According to the 2025 Pump It Up Franchise Disclosure Document, a franchisee must exercise reasonable precautions, no less rigorous than those the franchisee uses to protect its own confidential information, to protect the confidentiality of the software and user manuals. These precautions must include, at a minimum, giving instructions to the franchisee's employees who will have access to the software and user manuals that the same are proprietary to, and the trade secrets of, Pump It Up.
This means that Pump It Up franchisees are expected to take the same level of care in protecting the franchisor's software as they would in protecting their own most sensitive business data. This includes educating employees about the confidential nature of the software and restricting access only to those who need it for their job functions.
Pump It Up franchisees are also prohibited from removing or altering any proprietary designations included in the software or user manuals. Furthermore, the franchisee must notify Pump It Up immediately if they become aware of any unauthorized knowledge, possession, or use of the software. Failure to adequately protect the software could result in irreparable injury to Pump It Up, and the franchisor is entitled to seek injunctive relief against any such violation.