Are territory selection criteria considered confidential information for a Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, knowledge and experience used in developing and operating your HydroDog Business (including, without limitation, the System Standards);
- (b) market research and promotional, marketing and advertising programs for your HydroDog Business;
- (c) client communication programs, along with data used or generated in connection with those programs;
- (d) the System and the know-how related to its use;
- (e) plans, specifications, size and physical characteristics of the HydroDog Businesses, HydroDog Vehicles;
- (f) Territory selection criteria;
- (g) design of equipment, furniture, forms, materials and supplies;
- (h) training for the HydroDog Businesses;
- (i) methods, techniques, formats, specifications, procedures, information and systems related to and knowledge of and experience in the development, operation and franchising of the HydroDog Businesses;
- (j) knowledge of specifications for certain Products and Supplies and suppliers of certain Products and Supplies;
- (k) pet grooming techniques, products and services;
- (l) the Client Database (as described in Section 9.5 below); and
- (m) knowledge of operating results and financial performance of the HydroDog Businesses other than those operated by you (or your affiliates).
- 9.2 Restriction on Use of Confidential Information. You acknowledge and agree that you will not acquire any interest in Confidential Information, other than the right to use certain Confidential Information in operating your HydroDog Business during this Agreement's term and according to this Agreement's terms and conditions, and that your use of any Confidential Information for any purpose not expressly authorized by this Agreement would constitute an unfair method of competition with us and our franchisees and may violate certain laws. You further acknowledge and agree that the Confidential Information is proprietary, includes our trade secrets, and is disclosed to you only on the condition that you, your Owners, managers, employees and/or independent contractors who have access to it agree, and they do agree, that you and they:
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, territory selection criteria are considered confidential information. As a Hydrodog franchisee, you acknowledge that you will not acquire any interest in the confidential information, other than the right to use certain confidential information in operating your Hydrodog business during the agreement's term and according to the agreement's terms and conditions.
This means that the methods and standards Hydrodog uses to determine suitable locations are proprietary. Franchisees are only allowed to use this information to operate their own Hydrodog business and cannot use it for any other purpose.
This restriction extends indefinitely after the agreement's term, preventing franchisees from using this information in any competitive business. Franchisees must also ensure their employees and independent contractors with access to this information sign confidentiality and non-competition agreements. This protects Hydrodog's strategic site selection processes and prevents franchisees from leveraging this knowledge for their own benefit or the benefit of competitors.