Is a Hydrodog franchisee required to comply with procedures prescribed to prevent unauthorized use of confidential information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must comply with procedures to prevent unauthorized use or disclosure of confidential information. Franchisees cannot make unauthorized copies of confidential information, whether it's in electronic, written, or tangible form. Hydrodog can periodically prescribe reasonable procedures to prevent unauthorized use or disclosure of confidential information. These procedures may include restricting disclosure to personnel who need the information to operate the Hydrodog business. Franchisees must also ensure that all employees and independent contractors who have access to confidential information sign confidentiality and non-competition agreements in a form acceptable to Hydrodog. Hydrodog has the right to regulate the form of these agreements and can be a third-party beneficiary with independent enforcement rights.
Confidential information includes methods, formats, systems, procedures, sales and marketing techniques, market research, client communication programs, the Hydrodog system and related know-how, Hydrodog business and vehicle specifications, territory selection criteria, equipment design, training, and knowledge of product specifications and suppliers. It also encompasses pet grooming techniques, the client database, and operating results and financial performance of other Hydrodog businesses. Franchisees acknowledge that they only have the right to use confidential information to operate their Hydrodog business and that unauthorized use would be an unfair method of competition.
Franchisees must keep confidential information strictly confidential during and indefinitely after the franchise agreement term. They must also use the highest degree of care to safeguard the confidentiality of the information. The use or duplication of any confidential information in any other business constitutes an unfair method of competition. Franchisees must not disclose or communicate any portion of the confidential information to any other person or entity, or use it for any purpose other than while working with Hydrodog under the Franchise Agreement.