Is the Hydrodog confidentiality agreement applicable to both employees and independent contractors?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ally prescribe to prevent unauthorized use or disclosure of Confidential Information, including, without limitation, restricting its disclosure to Franchised Business personnel and others needing to know such Confidential Information to operate your HydroDog Business, and requiring all employees and independent contractors having access to Confidential Information to sign confidentiality and non-competition agreements in a form acceptable to us. We have the right to regulate the form of confidentiality and non-competition agreement that you use and to be a third-party beneficiary of that agreement with independent enforcement rights.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the confidentiality agreement applies to both employees and independent contractors. Franchisees must ensure that all employees, independent contractors, agents, or representatives who may have access to Hydrodog's confidential information sign the standard confidentiality agreement. This requirement exists regardless of whether these individuals have already signed a Confidentiality and Non-Solicitation and Non-Competition Agreement.
This stipulation is in place to protect Hydrodog's confidential information and trade secrets. Confidential information includes, but is not limited to, methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, market research, client communication programs, the System and related know-how, plans, specifications, territory selection criteria, design of equipment, training, knowledge of product specifications, pet grooming techniques, and client databases.
The franchisor also mandates that franchisees implement reasonable procedures to prevent unauthorized use or disclosure of confidential information. This includes restricting disclosure to personnel needing the information to operate the Hydrodog business and ensuring all such individuals sign confidentiality and non-competition agreements in a form acceptable to Hydrodog. Hydrodog retains the right to regulate the form of these agreements and act as a third-party beneficiary with independent enforcement rights.
For a prospective Hydrodog franchisee, this means they must be diligent in ensuring all personnel with access to confidential information, whether employees or independent contractors, sign the required agreements. Failure to comply with these requirements could result in a breach of the franchise agreement and potential legal repercussions. This is a fairly standard practice in franchising, as franchisors need to protect their intellectual property and trade secrets.