Are the franchisee's obligations regarding confidential information independent of other provisions in the Zoomin Groomin agreement?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
5.4.Performance Data
Performance data is Confidential Information and must be treated as defined in Section 6.2. We reserve the right to share performance data of your Franchised Business with individuals and agents who need it to provide us with assistance. We may also disclose aggregate performance data in our franchise disclosure documents.
Confidentiality
6.1.Definition
The term "Confidential Information" is defined as non-public sensitive or proprietary material related to our Franchise System, relationship with you or the Franchise Business whether provided by us or by you. The disclosure may be oral or written in any form including tangible, intangible and electronic media regardless whether it is marked. For the avoidance of doubt, Confidential Information includes Client lists, performance data and reports from our Franchise System along with any notes, summaries or other derivative works. Confidential Information does not include material that: a) you possessed more than thirty (30) days before the Effective Date of any contract between us, b) independently developed, c) obtained from a third party with no corresponding obligation of confidentiality, or d) in the public domain.
6.2.Confidentiality
You will not directly or indirectly disclose, publish, share with any third party any Confidential Information without our prior written consent. You may share Confidential Information with your employees or agents that need it to complete essential job functions if they are covered by equivalent restrictions.
6.3.Use
You may only use Confidential Information to perform your obligations under this Agreement. You will avoid using Confidential Information for your own benefit or to our detriment. For the avoidance of doubt, Confidential Information cannot be used in a competing business that is detrimental to us.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to the 2025 Zoomin Groomin Franchise Disclosure Document, franchisees are bound by confidentiality obligations as defined in Section 6.2 of the franchise agreement. This section states that franchisees cannot directly or indirectly disclose, publish, or share any confidential information with third parties without prior written consent from Zoomin Groomin. Franchisees are permitted to share confidential information with their employees or agents if those individuals are also bound by equivalent confidentiality restrictions.
The definition of "Confidential Information" includes any non-public, sensitive, or proprietary material related to the Zoomin Groomin Franchise System, the franchisee's relationship with Zoomin Groomin, or the Franchise Business itself. This information can be disclosed orally or in writing, regardless of whether it is marked as confidential. Examples of confidential information include client lists, performance data, and reports from the Franchise System, as well as any notes, summaries, or derivative works. However, information is not considered confidential if the franchisee possessed it more than thirty days before the effective date of any contract with Zoomin Groomin, if it was independently developed, if it was obtained from a third party without confidentiality obligations, or if it is already in the public domain.
The franchise agreement specifies that franchisees may only use confidential information to fulfill their obligations under the agreement and must avoid using it for their own benefit or to the detriment of Zoomin Groomin. The agreement explicitly prohibits the use of confidential information in a competing business that could harm Zoomin Groomin. These obligations ensure that franchisees protect Zoomin Groomin's proprietary information and maintain the integrity of the franchise system.