factual

What is the effect of disclosing Hydrodog's Confidential Information to another person or entity?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

competitive with, or substitutable for the Products and Services offered by HydroDog Businesses, whether now existing or hereafter developed, excluding any HydroDog Business under a franchise agreement with us, or any other business that we, at our sole discretion, determine to be competitive.

    1. Confidential Information You will not acquire any interest in the Confidential Information. The use or duplication of any Confidential Information in any other business will constitute an unfair method of competition. You will not disclose, leak, divulge, disseminate, reveal, make available, replicate, duplicate (in any form, tangible or intangible) or otherwise communicate all or any portion of the Confidential Information to any other person or entity, or use it for any purpose other than while you are working with us at the Business under a Franchise Agreement with Franchisor, either directly or indirectly. You will use the highest degree of care to safeguard the confidentiality of the Confidential Information and not make any copies of the Confidential Information (printed or an intangible form). You will follow all reasonable procedures we or the Franchisor may prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information (collectively, the "Confidentiality Obligations").
    1. Liquidated Damages. You acknowledge that the Franchisor would suffer substantial damages if you violated the Competitive Restriction set forth in Section 2 above. You acknowledge that that such damages are difficult to estimate accurately and proof of such damages would be burdensome and costly, although such damages are real and meaningful.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are restricted from disclosing confidential information to any other person or entity. The FDD specifies that franchisees will not disclose, leak, divulge, disseminate, reveal, make available, replicate, duplicate, or otherwise communicate any portion of the confidential information, either directly or indirectly, to any other person or entity, or use it for any purpose other than while working with Hydrodog under a Franchise Agreement.

Hydrodog franchisees must use the highest degree of care to safeguard the confidentiality of the confidential information and not make any copies of it, whether printed or in intangible form. Franchisees must also adhere to all reasonable procedures prescribed by Hydrodog to prevent unauthorized use or disclosure of the confidential information. The use or duplication of any confidential information in any other business will constitute an unfair method of competition.

The client database, which includes names, addresses, and other information regarding current and former clients, as well as those who have inquired about Hydrodog's services, is considered confidential information and Hydrodog's property. Franchisees are prohibited from disclosing, selling, assigning, transferring, or conveying the client database, or any portion thereof, to any person other than Hydrodog, either during or after the term of the agreement. A breach of this section can result in immediate termination of the Franchise Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.