To whom can a Punch King Fitness franchisee disclose Proprietary Information?
Punch_King_Fitness Franchise · 2024 FDDAnswer from 2024 FDD Document
The Proprietary Information is disclosed to you solely on the condition that you (1) will not use it in any other business or capacity; (2) will maintain the absolute confidentiality of the information during and after the term of your Franchise Agreement; (3) will not make unauthorized copies of any portion of the Operating Manual or any other written communication from us; (4) will not disclose or duplicate any part of the Proprietary Information other than disclosure to an employee of the franchised business to the extent necessary to do his or her job; and (5) will adopt and implement all reasonable procedures we may require preventing unauthorized use or disclosure of the information, including restrictions on disclosure of the information to employees of the franchised business 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 the confidentiality of the Proprietary Information and conform to the noncompetition covenants.
You must inform us in writing if anyone breaches the Nondisclosure and Noncompetition Agreement or any other violation of the obligations regarding any of the Proprietary Information or if you learn about any improper use of any of it.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 39–41)
What This Means (2024 FDD)
According to Punch King Fitness's 2024 Franchise Disclosure Document, franchisees are permitted to disclose Proprietary Information only to a limited extent. Specifically, disclosure is allowed to an employee of the franchised business, but only to the degree necessary for that employee to perform their job duties. This is a common practice in franchising, as it allows franchisees to operate their businesses effectively while still protecting the franchisor's confidential information.
The FDD emphasizes that franchisees must maintain the absolute confidentiality of the Proprietary Information both during and after the term of the Franchise Agreement. Unauthorized copies of the Operating Manual or any other written communication from Punch King Fitness are strictly prohibited. Franchisees are also required to implement reasonable procedures to prevent unauthorized use or disclosure of the information, including using nondisclosure and non-competition clauses in employment agreements.
Furthermore, 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. Franchisees are obligated to inform Punch King Fitness in writing if anyone breaches the Nondisclosure and Noncompetition Agreement or violates any obligations regarding the Proprietary Information. This highlights the importance Punch King Fitness places on protecting its trade secrets and confidential information, and the responsibility franchisees have in upholding these protections.