Can a Hydrodog franchisee use confidential information in any other business or capacity?
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, franchisees are explicitly restricted from using any confidential information in any business or capacity other than operating their Hydrodog franchise. The FDD emphasizes that using confidential information for purposes not expressly authorized by the franchise agreement constitutes unfair competition and may violate laws. This restriction applies both during the term of the franchise agreement and indefinitely after its termination.
Confidential information includes, but is not limited to, methods, systems, techniques, market research, client communication programs, the Hydrodog system itself, territory selection criteria, designs, training methods, knowledge of products and suppliers, pet grooming techniques, the client database, and operating results of other Hydrodog businesses. Franchisees must maintain the absolute confidentiality of this information and prevent unauthorized use or disclosure.
The agreement also states that the client database, which includes names, addresses, and other client information, is Hydrodog's property and a trade secret. Franchisees are prohibited from disclosing, selling, or transferring the client database to any other person or entity, and a breach of this provision can lead to immediate termination of the franchise agreement. Franchisees must also disclose to Hydrodog any ideas, techniques, services, or products they develop concerning the operation of their Hydrodog business, granting Hydrodog a perpetual, royalty-free right to use and sublicense these innovations.