What procedures must a Hydrodog franchisee follow to prevent unauthorized use or disclosure of the Confidential Information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
e, 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;
- (c) Will not make unauthorized copies of any Confidential Information disclosed via electronic medium or in written or other tangible form; and
- (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.
You must disclose to us all ideas, techniques, services and products concerning the development and operation of your HydroDog Business that you or your employees conceive or develop during the term of this Agreement. You must grant to us and agree to obtain from your owners, employees, contractors, and agents a perpetual, irrevocable, royalty-free, non-exclusive, transferable, and worldwide right to use, modify, exploit, and sublicense these ideas, techniques, innovations, improvements and products concerning the development and operation of Franchised Business that you or your employees, contractors, or agents conceive or develop during the term of this Agreement in all pet-related product and service businesses.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must adhere to specific procedures to protect confidential information. These procedures include not making unauthorized copies of confidential information, whether it's in electronic, written, or tangible form. Franchisees are also required to implement any reasonable procedures that Hydrodog periodically prescribes to prevent unauthorized use or disclosure of confidential information.
These measures include restricting the disclosure of confidential information to only those personnel and others who need to know it for the operation of the Hydrodog business. Furthermore, franchisees must ensure that all employees and independent contractors who have access to confidential information sign confidentiality and non-competition agreements in a form acceptable to Hydrodog. Hydrodog retains the right to regulate the form of these agreements and to be a third-party beneficiary with independent enforcement rights.
The Franchise Disclosure Document emphasizes that franchisees 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). Franchisees will follow all reasonable procedures Hydrodog may prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information. This includes not using the Confidential Information in any other business or capacity and maintaining its absolute confidentiality during and after the term of the Franchise Agreement.
These confidentiality obligations are crucial for protecting Hydrodog's proprietary information and maintaining a competitive advantage. Failure to comply with these procedures could result in a breach of the franchise agreement and potential legal consequences. Prospective franchisees should carefully review these requirements and ensure they have the capacity to implement and enforce them within their business.