What is a Dog Haus franchisee required to do regarding confidentiality covenants from supervisorial or managerial personnel?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.5 Confidentiality Covenants from Individuals Associated with Franchisee.
Franchisee shall require any supervisorial or managerial personnel who may have access to any Dog Haus Confidential Information of Franchisor to execute covenants that they will maintain the confidentiality of the Dog Haus Confidential Information they receive in connection with their association with Franchisee.
Such covenants shall be in a form satisfactory to Franchisor, including, without limitation, specific identification of Franchisor as a third-party beneficiary of such covenants with the independent right to enforce them.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding confidentiality covenants for their supervisorial and managerial personnel. Dog Haus requires franchisees to ensure that any supervisorial or managerial staff who have access to the company's confidential information sign agreements to maintain that confidentiality.
These confidentiality agreements must be in a format that Dog Haus finds satisfactory. A key requirement is that Dog Haus must be explicitly identified as a third-party beneficiary within these agreements. This provision grants Dog Haus the independent right to enforce these covenants directly against the personnel, ensuring that Dog Haus can protect its confidential information even if the franchisee does not take action.
This requirement is in place to protect Dog Haus's trade secrets and confidential information, which the FDD defines broadly. This includes operational methods, recipes, business plans, customer data, and other proprietary information. By mandating these covenants, Dog Haus aims to prevent the unauthorized disclosure or use of its confidential information, which could harm its competitive position and the value of the Dog Haus system.