What steps must a Hydrodog franchisee take regarding the disclosure of confidential information?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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. We will have no obligation to make any lump sum or on-going payments to you with respect to any idea, concept, method, technique or product. You must agree that you will not use nor will you allow any other person or entity to use any of these ideas, techniques or products without obtaining our prior written approval. Such ideas, techniques, services and products will be deemed to be our sole and exclusive property, part of the System, and works made-for-hire for us. To the extent any item does not qualify as a "work made-for-hire" for us, by this paragraph you assign ownership of that item, and all related rights to that item, to us and agree to sign whatever assignment or other documents we request to evidence our ownership or to help us obtain intellectual property rights in the item.
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, franchisees have several obligations regarding confidential information. Franchisees must not use confidential information in any business or capacity other than operating their Hydrodog business. They must maintain the absolute confidentiality of the information both during and after the franchise agreement term. Unauthorized copies of confidential information in written form are prohibited, and franchisees must comply with all procedures prescribed by Hydrodog to prevent unauthorized use or disclosure. Franchisees must also safeguard the confidentiality of the information with the highest degree of care.
Hydrodog requires franchisees to implement reasonable procedures to prevent unauthorized use or disclosure of confidential information. This includes restricting its disclosure to personnel needing to know the information to operate the Hydrodog business. Franchisees must also ensure that all employees and independent contractors with 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 agreement states that the list of names, addresses, and other information regarding current and former clients, as well as those who have inquired about Hydrodog's services (the "Client Database"), is included in the confidential information and is Hydrodog's property. Franchisees are prohibited from disclosing, selling, assigning, transferring, or conveying the Client Database to any person other than Hydrodog, either during or after the agreement term. A breach of this section can result in immediate termination of the agreement. Franchisees must also disclose to Hydrodog all ideas, techniques, services, and products concerning the development and operation of their Hydrodog business that they or their employees conceive or develop during the agreement term, granting Hydrodog a perpetual, irrevocable, royalty-free, non-exclusive, transferable, and worldwide right to use, modify, exploit, and sublicense these items.