Is the Client Database considered confidential information for a Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
9.3 Client Database. You agree that the list of the names, addresses and other information regarding your current clients, former clients, and those who have inquired about the Services (the "Client
Database") is included in the Confidential Information, is our property, and constitutes a trade secret of ours. You agree that you may not disclose, sell, assign, transfer or convey the Client Database, or any portion thereof, to any person other than us either during the term of this Agreement or thereafter, and you acknowledge that the Client Database constitutes our sole and exclusive property. You further agree that a breach of this Section shall be grounds for immediate termination of this Agreement pursuant to Section 14.1.12.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the client database, which includes names, addresses, and other information about current, former, and prospective clients, is considered confidential information and a trade secret owned by Hydrodog. As a Hydrodog franchisee, you cannot disclose, sell, assign, transfer, or convey the client database to anyone other than Hydrodog, both during and after the franchise agreement.
This confidentiality extends to various aspects of the Hydrodog business, including operational methods, marketing programs, client communication strategies, and the Hydrodog System itself. Franchisees are only granted the right to use certain confidential information to operate their Hydrodog business during the agreement term, and any unauthorized use is considered unfair competition.
Franchisees must ensure that they, their owners, managers, employees, and independent contractors keep the confidential information strictly confidential, both during and after the agreement. This includes not using the information in any other business, avoiding unauthorized copies, and implementing procedures to prevent unauthorized use or disclosure. Hydrodog has the right to regulate the form of confidentiality and non-competition agreements used by franchisees and can act as a third-party beneficiary with independent enforcement rights.
Violation of these confidentiality obligations, particularly concerning the client database, can lead to immediate termination of the franchise agreement. This underscores the importance of protecting Hydrodog's confidential information to maintain the integrity of the franchise system and prevent unfair competition.