What is the meaning of 'Confidentiality Obligations' for a Hydrodog franchisee?

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees have specific 'Confidentiality Obligations' to protect Hydrodog's proprietary information. These obligations dictate how a franchisee must handle sensitive information related to the Hydrodog business. The franchisee must 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). The franchisee will follow all reasonable procedures Hydrodog may prescribe to prevent unauthorized use or disclosure of the Confidential Information.

Hydrodog defines 'Confidential Information' broadly, encompassing various aspects of the business. This includes methods, formats, systems, procedures, sales and marketing techniques, market research, client communication programs, the System and know-how, HydroDog Business and Vehicle specifications, territory selection criteria, equipment design, training methods, and knowledge related to the development, operation, and franchising of HydroDog Businesses. It also extends to knowledge of product specifications, suppliers, pet grooming techniques, the Client Database, and operating results and financial performance of other HydroDog Businesses.

The franchisee acknowledges they will not acquire any interest in the Confidential Information, other than the right to use certain Confidential Information in operating their HydroDog Business during the Agreement's term and according to its terms and conditions. Using Confidential Information for purposes not expressly authorized by the Franchise Agreement constitutes an unfair method of competition and may violate certain laws. This restriction extends beyond just the franchisee; their owners, managers, employees, and independent contractors with access to confidential information must also agree to keep it strictly confidential both during and indefinitely after the agreement's term. They are prohibited from using any Confidential Information in any other business or capacity.

Furthermore, any General Manager and, if the franchisee is an entity, any officer must sign a 'Confidentiality and Non-Solicitation and Non-Competition Agreement' as a condition of their employment or appointment. All employees, independent contractors, agents, or representatives who may have access to Hydrodog's confidential information must sign a standard confidentiality agreement. Violation of these competitive restrictions may result in the franchisee paying Hydrodog partial liquidated damages in the amount of the then-current initial franchise fee.