Does confidential information for Hydrodog include knowledge of operating results?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
9.1 Types of Confidential Information. We and our affiliates possess (and will continue to develop and acquire) certain confidential information (the "Confidential Information") relating to the development and operation of the HydroDog Businesses, which includes (without limitation):
- (m) knowledge of operating results and financial performance of the HydroDog Businesses other than those operated by you (or your affiliates).
- 9.2 Restriction on Use of Confidential Information. You acknowledge and agree that you will not acquire any interest in Confidential Information, other than the right to use certain Confidential Information in operating your HydroDog Business during this Agreement's term and according to this Agreement's terms and conditions, and that your use of any Confidential Information for any purpose not expressly authorized by this Agreement would constitute an unfair method of competition with us and our franchisees and may violate certain laws. You further acknowledge and agree that the Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you, your Owners, managers, employees and/or independent contractors who have access to it agree, and they do agree, that you and they:
- (a) Will not use any Confidential Information in any other business or capacity;
- (b) Will keep the Confidential Information strictly confidential during and indefinitely after this Agreement's term;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, confidential information includes knowledge of operating results and financial performance of Hydrodog businesses, excluding those operated by the franchisee or its affiliates. This means Hydrodog considers data like sales figures, profit margins, and other financial metrics from other franchisees to be proprietary and confidential.
As a Hydrodog franchisee, you are restricted from using this confidential information for any purpose not explicitly authorized in the franchise agreement. Unauthorized use could be considered unfair competition and a violation of the agreement. Franchisees must keep this information strictly confidential both during the term of the agreement and indefinitely after it ends.
Hydrodog also requires franchisees to implement procedures to prevent unauthorized use or disclosure of confidential information. This includes restricting disclosure to only those personnel who need to know the information to operate the Hydrodog business and ensuring that all employees and independent contractors sign confidentiality and non-competition agreements. Hydrodog retains the right to regulate the form of these agreements and to be a third-party beneficiary with independent enforcement rights.
This underscores the importance of protecting Hydrodog's proprietary information and trade secrets. Franchisees should be aware that any ideas, techniques, services, or products developed during the term of the agreement related to the Hydrodog business must be disclosed to Hydrodog and become their property. This includes granting Hydrodog a perpetual, royalty-free right to use and sublicense these developments.