Is a Principal Owner of a Hydrodog franchise required to sign a Confidentiality Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) a Principal Owner of your HydroDog Business Entity (defined as a person with at least a twenty percent (20%) ownership interest in you) must: (i) have management responsibility and authority over the "Business" (defined as your HydroDog Business) on a day-to-day basis; (ii) be actively employed on a full-time basis to manage your HydroDog Business's operations; (iii) be present at your HydroDog Business for at least fifty percent (50%) of the hours your HydroDog Business is open to the public for business; (iv) be bound by our then-current form of Confidentiality Agreement (or other form satisfactory to us); and (v) satisfactorily complete our initial training program and any other training programs we request during the Term; and
- (h) each of your Principal Owners, during the term of this Agreement, will sign and deliver to us our standard form of Principal Owner's Guaranty ("Owner's Guaranty") undertaking to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us. A copy of our current form of Principal Owner's Guaranty is attached as an Exhibit B to the Franchise Disclosure Document.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a Principal Owner is required to sign a Confidentiality Agreement. A Principal Owner is defined as someone with at least a twenty percent ownership interest in the Hydrodog business entity.
Specifically, the FDD states that a Principal Owner must be bound by Hydrodog's then-current form of Confidentiality Agreement or another form that is satisfactory to Hydrodog. This agreement aims to protect Hydrodog's confidential information and trade secrets.
In addition to the Confidentiality Agreement, each Principal Owner must sign and deliver Hydrodog's standard form of Principal Owner's Guaranty, which makes them jointly and severally liable for all provisions of the Franchise Agreement and any other agreements between the franchisee and Hydrodog. This ensures that the Principal Owners are fully committed to upholding the obligations of the franchise.