Is there a Confidentiality, Non-Solicitation and Non-Competition Agreement included in the Hydrodog franchise offering?
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Hydrodog FDD, Hydrodog requires franchisees to ensure that their personnel and independent contractors sign confidentiality and non-competition agreements. Hydrodog retains the right to regulate the form of these agreements and can be a third-party beneficiary with independent enforcement rights. This indicates that while a specific agreement isn't directly signed between the franchisee and Hydrodog, the franchisee must implement such agreements with their own staff. This measure aims to protect Hydrodog's confidential information and maintain a competitive advantage.
Hydrodog also emphasizes the importance of protecting its confidential information, including methods, formats, specifications, equipment, standards, procedures, sales and marketing techniques, and knowledge related to operating HydroDog Businesses. Franchisees and their owners must not disclose or use this information for anyone else's benefit during the franchise term. After the agreement ends, the confidential information must be returned to Hydrodog, and its use is prohibited. This underscores the franchisor's commitment to safeguarding its trade secrets and proprietary information.
Furthermore, the FDD states that Hydrodog considers the client database, which includes names, addresses, and other client information, as confidential information and a trade secret. Franchisees are prohibited from disclosing, selling, assigning, transferring, or conveying the client database to any person other than Hydrodog, both during and after the franchise agreement. A breach of this section can lead to immediate termination of the agreement. This provision highlights the value Hydrodog places on its client data and the restrictions imposed on franchisees regarding its use and dissemination.