Can Hydrodog regulate the form of the non-disclosure and non-competition agreement that I use with my employees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 33–34)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to regulate the form of confidentiality and non-competition agreements that franchisees use with their employees. Hydrodog also has the right to be a third-party beneficiary of that agreement, which gives them independent enforcement rights. This means that Hydrodog can ensure that the agreements franchisees use with their employees align with Hydrodog's standards and protect their confidential information and competitive interests.
This requirement ensures that all employees and independent contractors who have access to Hydrodog's confidential information are bound by agreements that Hydrodog deems acceptable. This is a common practice in franchising to maintain consistency and protect the franchisor's proprietary information and system standards across all franchise locations.
As a prospective franchisee, it is important to understand the specific requirements Hydrodog has for these agreements. You should review the standard confidentiality and non-competition agreement provided by Hydrodog and ensure that you can implement it effectively with your employees. You should also be aware that you must disclose to Hydrodog any ideas, techniques, services, or products concerning the development and operation of your HydroDog Business that you or your employees conceive or develop during the term of the Franchise Agreement.
Furthermore, any General Manager and, if the franchisee is an entity, any officer must sign Hydrodog's current "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 Hydrodog's standard confidentiality agreement, regardless of whether they have already signed a Confidentiality and Non-Solicitation and Non-Competition Agreement.