What level of diligence is a candidate required to exercise in safeguarding the Confidential Information related to a Dog Haus franchise?

According to Dog Haus's 2025 Franchise Disclosure Document, a candidate must exercise the highest degree of diligence in safeguarding the Confidential Information. This obligation is detailed within the agreement a candidate enters into with Dog Haus before becoming a franchisee. The candidate must fully and strictly maintain the confidentiality of the Confidential Information.

This means a prospective Dog Haus franchisee must take extreme care to protect any information they receive about Dog Haus's business operations, trade secrets, and other proprietary information. They cannot disclose or reveal this information to anyone unless that person is also actively participating in the franchise acquisition and has signed a Non-Disclosure Agreement. The candidate must first disclose the identity of such person to Franchisor in writing and obtaining such person's signature on a Non-Disclosure Agreement similar to this Agreement, unless covered by attorney-client privilege.

Furthermore, the candidate is prohibited from reproducing or copying any Confidential Information and cannot use it for any purpose until they officially become a Dog Haus franchisee. Once they become a franchisee, they can only use the information in accordance with the Franchise Agreement. This stringent requirement highlights the importance Dog Haus places on protecting its proprietary information and maintaining its competitive edge.

These measures are in place to protect the Dog Haus System, Dog Haus Marks, and associated goodwill. Failure to comply with these confidentiality requirements could result in legal action, including injunctive relief, as unauthorized use of the Confidential Information could cause irreparable damage to Dog Haus and its franchisees.