Can the Franchisor prescribe procedures to prevent unauthorized use of Hydrodog's Confidential Information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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").
- (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, the franchisor can prescribe procedures to prevent unauthorized use or disclosure of confidential information. Franchisees must adhere to all reasonable procedures that Hydrodog or the Franchisor may prescribe to prevent unauthorized use or disclosure of the Confidential Information, which are referred to as the "Confidentiality Obligations."
Hydrodog franchisees must adopt and implement all reasonable procedures that Hydrodog periodically prescribes to prevent unauthorized use or disclosure of Confidential Information. These procedures include restricting its disclosure to Franchised Business personnel and others needing to know such Confidential Information to operate their HydroDog Business. Franchisees must also require all employees and independent contractors having access to Confidential Information to sign confidentiality and non-competition agreements in a form acceptable to Hydrodog. Hydrodog retains the right to regulate the form of confidentiality and non-competition agreement that the franchisee uses and to be a third-party beneficiary of that agreement with independent enforcement rights.
These measures are typical in franchising to protect the franchisor's intellectual property and trade secrets. By implementing these procedures, Hydrodog aims to maintain the confidentiality of its proprietary information, which is crucial for maintaining a competitive advantage and the integrity of the Hydrodog system. Franchisees should carefully review and comply with these procedures to avoid potential breaches of the franchise agreement and possible legal repercussions.