Is client information considered confidential and proprietary for Punch King Fitness franchisees?

According to Punch King Fitness's 2024 Franchise Disclosure Document, client information is considered confidential and proprietary. The FDD specifies that the Operating Manual, operating methods, business procedures, and all client information, including names, addresses, and financial information, are confidential and proprietary. This information is considered a trade secret of Punch King Fitness.

As a Punch King Fitness franchisee, you are prohibited from using this information in any business other than your Punch King Fitness franchise. You must maintain the absolute confidentiality of this information both during and after the term of your Franchise Agreement. Unauthorized copies of the Operating Manual or any other written communication from Punch King Fitness are not allowed. Disclosure of Proprietary Information is restricted to employees of the franchised business only to the extent necessary for them to perform their job duties.

To ensure confidentiality, Punch King Fitness requires franchisees to implement reasonable procedures to prevent unauthorized use or disclosure of the information. This includes restrictions on disclosing information to employees and the use of nondisclosure and non-competition clauses in employment agreements. All shareholders, officers, directors, partners, and members of the franchise are presumed to have access to Proprietary Information and must sign a Nondisclosure and Noncompetition Agreement to maintain confidentiality and adhere to noncompetition covenants.

Furthermore, franchisees are obligated to inform Punch King Fitness in writing of any breaches of the Nondisclosure and Noncompetition Agreement or any other violations regarding the Proprietary Information, as well as any improper use of it. This underscores the importance Punch King Fitness places on protecting its confidential information and trade secrets.