When can a Hydrodog franchisee use the Confidential Information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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, a franchisee's right to use Confidential Information is explicitly tied to the term and conditions of the Franchise Agreement. Hydrodog franchisees can use certain Confidential Information only while operating their HydroDog Business under the active Franchise Agreement. This usage must align strictly with the terms outlined in the agreement.
The FDD emphasizes that franchisees do not acquire any ownership interest in the Confidential Information itself, but rather a limited right to use it for authorized purposes during the franchise term. Any unauthorized use of the Confidential Information, or use outside the scope of the Franchise Agreement, is considered an unfair method of competition. This restriction extends not only to the franchisee but also to their owners, managers, employees, and independent contractors who have access to the information.
After the termination of the Franchise Agreement, the franchisee's right to use the Confidential Information ceases, and they are obligated to maintain its confidentiality indefinitely. This includes refraining from using the information in any other business or capacity. Hydrodog also requires franchisees to implement procedures to prevent unauthorized use or disclosure of Confidential Information, including requiring employees and contractors to sign confidentiality and non-competition agreements.
In practical terms, this means a Hydrodog franchisee must be vigilant in protecting the brand's proprietary information, limiting its use to the operation of their franchised business during the agreement's term, and ensuring that all personnel with access to the information are bound by confidentiality obligations. Failure to comply with these restrictions could lead to legal repercussions and termination of the franchise agreement.