For Canine Dimensions, what independent right does the Franchisor have regarding the confidentiality covenants signed by the Franchisee's Associates?
Canine_Dimensions Franchise · 2025 FDDAnswer from 2025 FDD Document
h Franchisee may be apprised by virtue of Franchisee's operation under this Agreement.
9.3 Transmittal to Associates
Franchisee shall divulge such Confidential Information only to such of its Associates as must have access to it in order to operate the Franchised Business. Further, Franchisee shall require its Associates and all other personnel having access to any Confidential Information from Franchisor to execute an agreement that they will maintain the confidentiality of information they receive in connection with their employment by Franchisee at the Franchised Business. Such covenants must be in a form satisfactory to Franchisor and identify Franchisor as a third party beneficiary of the covenants with the independent right to enforce them. Franchisee acknowledges and agrees that the form of confidentiality agreement is a form of agreement only, and that it may or may not be enforceable in a particular jurisdiction. Franchisee is solely responsible for obtaining its own legal advice with respect to the adequacy and enforceability of the terms and provisions of any confidentiality or non-competition agreement Franchisee requires its Associates, employees, agents
and independent contractors to sign.
Source: Item 22 — CONTRACTS (FDD page 36)
What This Means (2025 FDD)
According to Canine Dimensions' 2025 Franchise Disclosure Document, Canine Dimensions requires franchisees to ensure their associates sign confidentiality agreements. These agreements must be in a form satisfactory to Canine Dimensions.
Specifically, Canine Dimensions is identified as a third-party beneficiary in these confidentiality agreements. This grants Canine Dimensions the independent right to enforce these covenants directly against the franchisee's associates.
The FDD also clarifies that the enforceability of these confidentiality agreements may vary by jurisdiction, and it is the franchisee's responsibility to seek legal advice regarding the adequacy and enforceability of these agreements. If a franchisee fails to ensure that their associates comply with the confidentiality requirements, the franchisee acknowledges that this failure will cause irreparable injury to Canine Dimensions. In such cases, the franchisee agrees to cover all court costs and reasonable attorney's fees incurred by Canine Dimensions in obtaining specific performance or an injunction against the violation.