Can Hydrodog require that they be made a third-party beneficiary of the non-disclosure agreement with my employees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
nfidential 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.
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 can require that they be made a third-party beneficiary of the non-disclosure agreement with your employees. Hydrodog has the right to regulate the form of confidentiality and non-competition agreement that franchisees use and to be a third-party beneficiary of that agreement with independent enforcement rights.
Hydrodog also requires that owners, Business Managers, and any employees, independent contractors, agents, or representatives who may have access to confidential information sign Confidentiality and Non-Solicitation and Non-Competition Agreements that list Hydrodog as a third-party entity. The specific form for this agreement is attached to the disclosure document as Exhibit "F."
This means that as a Hydrodog franchisee, you must ensure your employees and relevant personnel sign agreements that protect Hydrodog's confidential information and include Hydrodog as a third-party beneficiary. This gives Hydrodog the right to directly enforce these agreements against your employees if necessary. Prospective franchisees should carefully review Exhibit F to understand the full scope of these requirements.