Does Hydrodog have the right to prescribe procedures to prevent unauthorized use or disclosure of confidential information?
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 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to prescribe procedures to prevent unauthorized use or disclosure of confidential information. As a Hydrodog franchisee, you must adopt and implement all reasonable procedures that Hydrodog periodically prescribes to prevent unauthorized use or disclosure of confidential information. This includes restricting its disclosure to franchise business personnel and others needing to know such confidential information to operate your Hydrodog business.
Furthermore, you must require all employees and independent contractors having access to confidential information to sign confidentiality and non-competition agreements in a form acceptable to Hydrodog. Hydrodog retains 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.
These measures are typical in franchising to protect the franchisor's proprietary information and maintain a consistent brand standard across all franchise locations. Failure to comply with these confidentiality obligations could result in legal action or termination of the franchise agreement.