What are the consequences if a Canine Dimensions franchisee discloses confidential information?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that any failure to comply with the requirements of this Section 9 will cause Franchisor irreparable injury, and Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in obtaining specific performance of, or an injunction against, violation of the requirements of this Section 9.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, if a franchisee fails to comply with the confidentiality requirements outlined in Section 9 of the franchise agreement, Canine Dimensions will suffer irreparable injury. In such a case, the franchisee is responsible for covering all court costs and reasonable attorney's fees that Canine Dimensions incurs while seeking specific performance or an injunction against the violation of these confidentiality requirements.
This means that franchisees must be extremely careful in handling confidential information, restricting access to only those associates who require it for business operations. Furthermore, franchisees must ensure that their associates sign confidentiality agreements that are satisfactory to Canine Dimensions, which also identifies Canine Dimensions as a third-party beneficiary with the right to enforce the agreement.
The FDD highlights that the enforceability of these confidentiality agreements may vary by jurisdiction, placing the onus on the franchisee to seek independent legal advice regarding the adequacy and enforceability of these agreements. This underscores the importance of franchisees understanding their legal obligations and taking proactive steps to protect Canine Dimensions' confidential information to avoid potentially significant legal and financial repercussions.