Can a Hydrodog franchisee make unauthorized copies of the Confidential Information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
e, 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. 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.
You must disclose to us all ideas, techniques, services and products concerning the development and operation of your HydroDog Business that you or your employees conceive or develop during the term of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from making unauthorized copies of confidential information. The FDD states that franchisees will not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form. Franchisees must also implement reasonable procedures to prevent unauthorized use or disclosure of Confidential Information, including restricting its disclosure to personnel needing to know it for operating the HydroDog business.
Hydrodog requires all employees and independent contractors with access to confidential information 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. This underscores the importance Hydrodog places on protecting its proprietary information and trade secrets.
The Hydrodog FDD also specifies that franchisees 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). Franchisees must follow all reasonable procedures prescribed by Hydrodog to prevent unauthorized use or disclosure of the Confidential Information. Any permitted copies of the manuals must be marked as "Confidential" and maintained with the same level of security as the original Manuals.
These measures are typical in franchising to protect the franchisor's intellectual property and maintain a consistent brand standard across all franchise locations. Prospective Hydrodog franchisees should carefully review these confidentiality obligations and ensure they have systems in place to comply with them.