Does 'Dog Haus Confidential Information' include trademarks and trade secrets?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges and agrees that the Dog Haus System is comprised of confidential information that has been developed by Franchisor and its affiliate by the investment of time, skill, effort and money and is widely recognized by the public, is of substantial value, and is proprietary, confidential and constitutes trade secrets of Franchisor and its affiliates, and includes, without limitation, tangible and intangible information (whether or not in electronic form) relating to Franchisor's business operations, products and services, recipes, sources of materials and equipment, client management and other software, data, other content, formulations, patterns, compilations, programs, devices and processes, business relationships, contact information for industry professionals, designs, developmental or experimental work and services, improvements, discoveries, plans for research, potential new or supplemental products and services, websites, advertisements or ancillary products and services, marketing and selling methods and/or plans, business plans, budgets and unpublished financial statements, licenses, prices and costs, vendors, collaborators, current customer and prospective customer names and addresses, information regarding credit extensions to customers, customer service purchasing histories and prices charged to customers, customer lists and other customer data, information regarding the skills and compensation of employees of Franchisor and contractors of Franchisor, designs, drawings, specifications, source code, object code, documentation, diagrams, flowcharts, research, development, marketing techniques and materials, trademarks, trade secrets, sales/license techniques, inventions, copyrightable material, trademarkable material, databases, relationships between Franchisor and other companies, persons or entities, knowledge or know-how concerning the methods of operation of the Franchised Restaurant which may be communicated to Franchisee, or of which Franchisee may be apprised, by virtue of Franchisee's operation of the Franchised Restaurant under the terms of this Agreement, and any other information or material considered proprietary by Franchisor whether or not designated as confidential information by Franchisor, that is not generally known by the public, or which derives independent economic value (actual or potential) from not being generally known to the public or persons unaffiliated with Franchisor or its affiliates and which is the subject of efforts by Franchisor that are reasonable under the circumstances to maintain its secrecy, and any other information in oral, written, graphic or electronic form which, given the circumstances surrounding its disclosure, would be considered confidential (collectively, the "Dog Haus Confidential Information").
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, 'Dog Haus Confidential Information' does include trademarks and trade secrets. The FDD specifies that the Dog Haus System is comprised of confidential information developed by the franchisor and its affiliates, which constitutes trade secrets. This confidential information includes tangible and intangible details related to the franchisor's business operations, such as recipes, material sources, software, data, and business relationships. It also explicitly includes trademarks and trade secrets.
This means that as a Dog Haus franchisee, you will have access to proprietary information that is critical to operating the franchise. However, you are also obligated to protect this information and prevent its unauthorized disclosure. This obligation extends both during the term of the franchise agreement and even after its termination or expiration.
The franchise agreement emphasizes the importance of protecting the Dog Haus System, Marks, and Trade Secrets. Franchisees must not communicate, divulge, or use any information considered trade secrets or confidential information for the benefit of others. This obligation is reinforced by requiring franchisees to ensure their supervisorial and managerial personnel also maintain the confidentiality of this information through signed covenants. This is a common practice in franchising to maintain brand consistency and protect the competitive advantage of the franchise system.
Furthermore, upon termination or expiration of the franchise agreement, franchisees must immediately cease using all Dog Haus Trade Secrets, Confidential Information, and Marks. They must also return all written materials incorporating these trade secrets. This highlights the ongoing responsibility of the franchisee to protect the franchisor's proprietary information, even after the business relationship ends. The franchisor also has the right to review and use any data pertaining to the franchised restaurant, reinforcing the franchisor's control over proprietary information.