What constitutes 'unfair method of competition' regarding Hydrodog's Confidential Information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ies;
- (k) pet grooming techniques, products and services;
- (l) the Client Database (as described in Section 9.5 below); and
- (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;
- (c) Will not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form; and
- (d) will adopt and implement all reasonable procedures that we periodically 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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, using Confidential Information in any way not explicitly authorized by the franchise agreement is considered an unfair method of competition. Franchisees do not acquire any ownership interest in Hydrodog's Confidential Information, only the right to use it for operating their Hydrodog business during the term of the agreement.
Confidential Information includes, but is not limited to, the methods, formats, systems, and procedures used in developing and operating a Hydrodog Business, market research, marketing and advertising programs, client communication programs, the System and related know-how, Hydrodog Business and Vehicle specifications, territory selection criteria, equipment design, training methods, knowledge of product specifications and suppliers, pet grooming techniques, and client databases. Franchisees must not use this information in any other business or capacity, and they must keep it strictly confidential both during and after the franchise agreement term.
To protect this information, franchisees must not make unauthorized copies of Confidential Information, whether in electronic, written, or tangible form. They must also implement reasonable procedures to prevent unauthorized use or disclosure, including restricting access to personnel who need the information to operate the Hydrodog Business and requiring these individuals to 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. Franchisees must also disclose to Hydrodog any ideas, techniques, services, or products they develop concerning the Hydrodog Business, granting Hydrodog a perpetual, royalty-free right to use and sublicense these innovations.