What is the definition of 'Confidential Information' in the Hydrodog franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge and experience used in developing and operating your HydroDog Business (including, without limitation, the System Standards);
- (b) market research and promotional, marketing and advertising programs for your HydroDog Business;
- (c) client communication programs, along with data used or generated in connection with those programs;
- (d) the System and the know-how related to its use;
- (e) plans, specifications, size and physical characteristics of the HydroDog Businesses, HydroDog Vehicles;
- (f) Territory selection criteria;
- (g) design of equipment, furniture, forms, materials and supplies;
- (h) training for the HydroDog Businesses;
- (i) methods, techniques, formats, specifications, procedures, information and systems related to and knowledge of and experience in the development, operation and franchising of the HydroDog Businesses;
- (j) knowledge of specifications for certain Products and Supplies and suppliers of certain Products and Supplies;
- (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;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, confidential information encompasses a wide array of proprietary knowledge and materials related to the Hydrodog business. This includes methods, formats, specifications, standards, systems, procedures, and sales and marketing techniques used in developing and operating a Hydrodog Business, including the System Standards. It also covers market research, promotional, marketing and advertising programs, client communication programs, and data used in connection with those programs.
Confidential information extends to the System itself, know-how related to its use, plans, specifications, size and physical characteristics of Hydrodog Businesses and Vehicles, territory selection criteria, design of equipment, furniture, forms, materials and supplies, and training programs. It further includes methods, techniques, formats, specifications, procedures, information and systems related to the development, operation, and franchising of Hydrodog Businesses, knowledge of specifications for certain Products and Supplies and suppliers, pet grooming techniques, products and services, and the Client Database. Finally, it includes knowledge of operating results and financial performance of Hydrodog Businesses other than those operated by the franchisee or their affiliates.
The Franchise agreement specifies that the franchisee will not acquire any interest in Confidential Information, other than the right to use certain Confidential Information in operating their HydroDog Business during the Agreement's term and according to the Agreement's terms and conditions. The franchisee must also agree to protect this information, and not use it in any other business or capacity, and to keep the Confidential Information strictly confidential during and indefinitely after this Agreement's term.
This broad definition of Confidential Information highlights the importance Hydrodog places on protecting its proprietary assets and trade secrets. Prospective franchisees should carefully review this section of the franchise agreement to understand the full scope of what is considered confidential and the obligations they will have to maintain its secrecy, both during and after the franchise term. The franchisee also has to disclose to Hydrodog all ideas, techniques, services and products concerning the development and operation of their Hydrodog Business that they or their employees conceive or develop during the term of this Agreement.