Are Canine Dimensions customer lists considered Confidential Information?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
Employee acknowledges and agrees that Employer is engaged in a highly competitive business and that Employer and Franchisor (as defined below) possess trade secrets, confidential and proprietary information (the "Confidential Information") which have been acquired, developed and maintained at considerable cost to Employer and Franchisor, which is not generally known outside the companies, and which, if disclosed to a competitor, would be harmful to Employer and/or Franchisor. For the purposes of this Agreement, "Franchisor" shall be defined to include Canine Dimensions Franchising, LLC, whose principal place of business is 23208 Sanabria Loop, Bonita Springs, Florida 34135. This Confidential Information includes, but is not limited to the following:
- a. price lists and marketing plans and strategies;
- b. proprietary computer software functions, capabilities, code, manuals, fixes, work arounds, revision plans, etc.;
- c. customer lists, customer identities, customer contacts and customer preferences (including identities and plans for approaching potential customers);
- d. any and all information contained in the Confidential Manual;
- e. all forms, instructions, processes, procedures, graphics, pictures, diagrams associated with operation of the Franchised Business;
- f. suppliers and vendors of Franchisor.
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- Employee understands and acknowledges that during the course of his employment by the Employer he has learned of, will learn of (and may develop), and has and will have access to Confidential Information of the Employer and Franchisor in order to properly and effectively discharge his duties.
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- Employee hereby agrees that at all times, both during Employee's employment and after the termination thereof (for whatever reason, and whether voluntary or not), Employee will maintain the secrecy and confidentiality of the Confidential Information and that he will not reveal, disclose, divulge or make known to any person or entity, or copy or use for his own account, any of the Confidential Information as defined above.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions's 2025 Franchise Disclosure Document, customer lists are considered Confidential Information. Specifically, the agreement states that Canine Dimensions and the Employer (likely referring to the franchisee in this context) possess trade secrets, confidential, and proprietary information acquired at considerable cost, which would be harmful if disclosed to a competitor. This Confidential Information includes, but is not limited to, price lists, marketing plans, proprietary software, information in the Confidential Manual, forms, processes, supplier lists, and importantly, customer lists, customer identities, customer contacts, and customer preferences.
This designation as Confidential Information means that a Canine Dimensions franchisee is obligated to protect the secrecy and confidentiality of these customer lists both during their time as a franchisee and after termination of the franchise agreement. The franchisee cannot reveal, disclose, divulge, or make known to any person or entity, or copy or use for their own account, any of this Confidential Information. This is a standard practice in franchising to protect the brand's customer base and competitive advantage.
The implications of this clause are significant for a prospective Canine Dimensions franchisee. It restricts their ability to use customer information for any purpose other than operating the franchise. After the franchise agreement ends, the franchisee cannot use the customer list to start a competing business or share it with others. Failure to comply with this confidentiality agreement could result in legal action from Canine Dimensions. Franchisees should understand the scope of this restriction and ensure they have systems in place to protect this information.
This type of confidentiality agreement is common in franchise systems. It is designed to protect the franchisor's investment in building a customer base and maintaining a competitive edge. Prospective franchisees should carefully review the definition of Confidential Information in the franchise agreement and understand their obligations to protect it. They should also consider how these restrictions might impact their future business opportunities after the franchise agreement ends.