What is the required level of care a Hydrodog franchisee must exercise to protect Confidential Information?

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must use the highest degree of care to safeguard the confidentiality of the Confidential Information. Franchisees must not make any copies of the Confidential Information in printed or intangible form. They must also adhere to all reasonable procedures prescribed by Hydrodog to prevent unauthorized use or disclosure, referred to as the "Confidentiality Obligations".

This obligation extends to preventing the disclosure, leaking, or any form of communication of Confidential Information to any person or entity. The information can only be used while the franchisee is working with Hydrodog under the Franchise Agreement. The agreement explicitly states that using or duplicating any Confidential Information in another business constitutes an unfair method of competition.

Hydrodog defines Confidential Information broadly, including methods, systems, techniques, marketing programs, the System itself, vehicle specifications, territory selection criteria, designs, training methods, and knowledge of operating results. The client database is specifically included as confidential information and a trade secret. Franchisees must ensure that their owners, managers, employees, and independent contractors with access to confidential information agree to keep it strictly confidential both during and after the term of the agreement.

For a prospective Hydrodog franchisee, this means implementing robust security measures to protect Hydrodog's proprietary information. This includes controlling access to manuals, client databases, and other sensitive materials, as well as ensuring that all personnel sign confidentiality agreements. Failure to comply with these obligations could result in legal action and termination of the franchise agreement.