Is a Dog Haus franchisee required to maintain the confidentiality of confidential, proprietary, and/or trade secret information regarding the Dog Haus System?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
npremises and off-premises consumption under the trade name and service mark "Dog Haus" and other related trademarks, service marks, logos and commercial symbols, and the trade dress used to identify Dog Haus Restaurants, including the unique and distinctive interior and exterior building designs, color schemes, furniture, fixtures and accessories present in Dog Haus Restaurants (collectively, the "Dog Haus Marks").
- B. The Dog Haus System includes, without limitation, the operations and training manuals and any other written directives related to the Dog Haus System (the "Manuals"), the operating methods and business practices related to Dog Haus Restaurants, the relationship between Franchisor and its franchisees, interior and exterior Dog Haus Restaurant design, other items of trade dress, specifications for equipment, fixtures and uniforms, defined product offerings, recipes and preparation methods, Franchisor specified pricing and promotions, restrictions on ownership, standard operating and administrative procedures, management and technical training programs, marketing and public relations programs, and Franchisor's website (collectively, the "Confidential Information"), all of which may be modified by Franchisor from time to time and may be disclosed to Recipient by Franchisee.
- C. Franchisor has and continues to protect the confidentiality of the Confidential Information by, among other things, (i) not revealing the confidential contents of the Confidential Information to unauthorized parties; (ii) requiring Dog Haus franchisees to acknowledge and agree in writing that the Confidential Information is confidential; (iii) requiring Dog Haus franchisees to agree in writing to maintain the confidentiality of the Confidential Information; (iv) monitoring electronic access to the Confidential Information by the use of passwords and other restrictions so that electronic access to the Confidential Information is limited to authorized parties; and (v) requiring its franchisees to return all Confidential Information to Franchisor upon the expiration and termination of their Franchise Agreements.
- D. Franchisor and Franchisee have entered into a Franchise Agreement under which Franchisor has granted Franchisee the right to own and operate a Dog Haus Restaurant (the "Dog Haus Restaurant") and to use the Dog Haus System, the Dog Haus Marks, the Manuals, and the Confidential Information in the operation of the Dog Haus Restaurant.
- E. Franchisee is obligated under its Franchise Agreement with Franchisor to obtain a written agreement from all supervisorial or managerial personnel employed by Franchisee and each independent contractor engaged by Franchisee who may have access to the Confidential Information and who may be the recipient of the disclosure of the Confidential Information to maintain the confidentiality of the Confidential Information, to obtain the written agreement from all supervisorial or managerial personnel employed by
Franchisee and each independent contractor to not use the Confidential Information other than in the course of his or her employment or engagement by Franchisee and to not disclose any of the Confidential Information to any unauthorized parties during the period of time that he or she is providing services for Franchisee and forever after his or her employment or engagement by Franchisee ends.
NOW, THEREFORE, IT IS AGREED:
1. ACKNOWLEDGMENTS OF RECIPIENT.
- 1.1 No Prior Experience, Information or Knowledge. Prior to his or her employment or engagement by Franchisee, Recipient had no experience, information or knowledge whatsoever about restaurants that offer gourmet hot dogs, sausages and hamburgers Recipient's knowledge of the Confidential Information was obtained only from Franchisee following the Effective Date and only in the course of Recipient's employment or engagement by Franchisee.
- 1.2 Confidential Information.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees are indeed required to maintain the confidentiality of proprietary information. Dog Haus protects its confidential information by requiring franchisees to acknowledge and agree in writing that the confidential information is confidential and to maintain its confidentiality. They also monitor electronic access to the information using passwords and other restrictions, limiting access to authorized parties. Upon termination or expiration of the Franchise Agreement, franchisees must return all confidential information to Dog Haus.
This obligation extends beyond just the franchisee. Franchisees must also obtain written agreements from all supervisorial or managerial personnel and independent contractors who may have access to confidential information. These agreements must ensure that these individuals maintain confidentiality, use the information only for their work with the franchisee, and not disclose it to unauthorized parties, both during and after their employment or engagement.
The Franchise Disclosure Document defines confidential information broadly, including tangible and intangible information related to business operations, recipes, sources of materials, software, data, business relationships, customer information, employee data, designs, and more. This information is considered proprietary and a trade secret, deriving economic value from not being publicly known. The agreement specifies that failure to comply with confidentiality requirements can result in irreparable injury to Dog Haus, potentially leading to legal action, including injunctions and payment of legal fees.
For a prospective Dog Haus franchisee, this means understanding the scope of confidential information and implementing strict procedures to protect it. This includes training employees and contractors, securing electronic data, and ensuring all necessary agreements are in place. The detailed definition of confidential information in the FDD underscores the importance Dog Haus places on protecting its trade secrets and proprietary information, which is a common practice in franchising to maintain brand consistency and competitive advantage.