What must a Dog Haus franchisee do to protect trade secrets?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, Franchisee shall not, during the term of this Agreement or thereafter, communicate, divulge, or use for the benefit of anyone else, any information that Franchisor considers its Dog Haus Trade Secrets and/or Dog Haus Confidential Information.
Franchisee shall divulge Dog Haus Confidential Information only to its supervisorial or managerial personnel who must have access to it in order to perform their employment responsibilities.
Dog Haus Confidential Information does not include any information that was in the lawful and unrestricted possession of Franchisee prior to its disclosure by Franchisor; is or becomes generally available to the public by acts other than those of Franchisee after receiving it; has been received lawfully and in good faith by Franchisee from a third party who did not derive it from Franchisor or Franchisee; or is shown by acceptable evidence to have been independently developed by Franchisee.
11.2 Value. Franchisee acknowledges and agrees the Dog Haus Confidential Information is not generally known by the public or parties other than Franchisor, its affiliates, its franchisees and Franchisee; derives independent economic value (actual or potential) from not being generally known to the public or persons unaffiliated with Franchisor or Franchisee; and is the subject of efforts by Franchisor that are reasonable under the circumstances to maintain the secrecy of the Dog Haus Confidential Information, including, without limitation (i) not revealing the Dog Haus Confidential Information to unauthorized parties; (ii) requiring its franchisees to
acknowledge and agree in writing that the Dog Haus Confidential Information is confidential; (iii) requiring its franchisees to agree in writing to maintain the confidentiality of the Dog Haus Confidential Information; (iv) monitoring electronic access to the Dog Haus Confidential Information by the use of passwords and other restrictions so that electronic access to the Dog Haus Confidential Information is limited to authorized parties; and (v) requiring its franchisees to return all Dog Haus Confidential Information to Franchisor upon the expiration or termination of their Franchise Agreements.
You must implement any reasonable procedures we may adopt to protect our trade secrets including restrictions on disclosures to your employees and requiring employees who will have access to our trade secrets to sign agreements containing non-disclosure and non-competition provisions in substantially the form of Exhibit F.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 60–61)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, franchisees have several obligations to protect the Dog Haus System, Marks, Trade Secrets, and associated goodwill. Franchisees must not communicate, divulge, or use any information that Dog Haus considers trade secrets or confidential information for the benefit of anyone else during the term of the agreement or thereafter. Franchisees are permitted to share Dog Haus Confidential Information only with supervisorial or managerial personnel who require access to it to perform their job responsibilities.
Dog Haus also takes measures to protect its confidential information. These measures include not revealing confidential information to unauthorized parties, requiring franchisees to acknowledge and agree in writing that the Dog Haus Confidential Information is confidential, requiring franchisees to agree in writing to maintain the confidentiality of the Dog Haus Confidential Information, monitoring electronic access to the Dog Haus Confidential Information by the use of passwords and other restrictions so that electronic access to the Dog Haus Confidential Information is limited to authorized parties, and requiring its franchisees to return all Dog Haus Confidential Information to Franchisor upon the expiration or termination of their Franchise Agreements.
Furthermore, Dog Haus emphasizes the importance of maintaining the secrecy of its confidential information, noting that it derives independent economic value from not being generally known to the public. The franchisor implements reasonable efforts to maintain this secrecy, including requiring franchisees to acknowledge and maintain the confidentiality of the information in writing. This is a common practice in franchising, as the protection of trade secrets and confidential information is crucial for maintaining a brand's competitive advantage and the integrity of its system. Franchisees are also required to implement any reasonable procedures Dog Haus may adopt to protect their trade secrets including restrictions on disclosures to their employees and requiring employees who will have access to their trade secrets to sign agreements containing non-disclosure and non-competition provisions in substantially the form of Exhibit F.