Under Hydrodog's Item 23, what constitutes 'unfair or deceptive practices' that would trigger disclosure requirements?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ies;
- (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:
- (a) Will not use any Confidential Information in any other business or capacity;
- (b) Will keep the Confidential Information strictly confidential during and indefinitely after this Agreement's term;
- (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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, engaging in unfair methods of competition includes using Confidential Information for purposes not expressly authorized by the franchise agreement. This encompasses using or duplicating confidential information in any other business. Franchisees must protect the confidentiality of Hydrodog's information and avoid unauthorized use or disclosure.
Confidential Information includes, but is not limited to, methods, formats, specifications, standards, systems, procedures, sales and marketing techniques, market research, client communication programs, the System and related know-how, HydroDog Business plans, territory selection criteria, design of equipment, training, and knowledge related to the franchise. It also covers knowledge of product specifications, supplier information, pet grooming techniques, the Client Database, and operating results of other HydroDog Businesses.
Franchisees must also disclose any ideas, techniques, services, and products they develop related to the Hydrodog Business during the agreement term, granting Hydrodog a perpetual, royalty-free right to use and sublicense these innovations. Failure to comply with these confidentiality and disclosure obligations can be considered an unfair or deceptive practice, potentially leading to legal consequences and termination of the franchise agreement.