factual

What measures must a Zoomin Groomin franchisee take to protect Confidential Information?

Zoomin_Groomin Franchise · 2025 FDD

Answer from 2025 FDD Document

THIS NON-DISCLOSURE AGREEMENT ("Agreement") is entered into this day of, 20 ("Effective Date"), by and between Zoomin Groomin USA LLC ("Company"), a Virginia limited liability company at 780 Lynnhaven Pkwy, Suite 240, Virginia Beach, VA 23452, and ("Recipient") for the purpose of preventing the unauthorized disclosure of Company's Confidential Information.

    1. Confidential Information. "Confidential Information" means all information or data (oral, written, and electronic) disclosed or furnished by Company to Recipient, including but not limited to all business processes and information, negotiations and negotiated terms to the Franchise Agreement or other Agreement between the parties, financial data, trade secrets, customer lists, agreements, manuals, operating materials, knowledge, know-how, and all other data, regardless of whether such information is designated as "Confidential Information" at the time of its disclosure.

Confidential Information does not include information (a) already in Recipient's possession before receipt from Company; (b) that is a matter of public knowledge through no fault of Recipient; or (c) that is rightfully received by Recipient from a third party not owing a duty of confidentiality to Company.

    1. Use of Confidential Information.

Recipient shall not, directly or indirectly, during the term of this Agreement or thereafter, communicate, divulge, or use any Confidential Information for the benefit of any other person, partnership, association, or corporation and shall use the Confidential Information only as authorized by Company.

Recipient agrees to take reasonable measures to prevent unauthorized persons or entities from accessing Confidential Information in Recipient's possession.

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 a Non-Disclosure Agreement to protect the company's Confidential Information. This agreement requires franchisees to refrain from communicating, divulging, or using any Confidential Information for the benefit of any other person or entity, and to use the Confidential Information only as authorized by Zoomin Groomin. This obligation extends both during the term of the agreement and after its termination. Confidential Information includes all data disclosed by Zoomin Groomin, such as business processes, financial data, trade secrets, customer lists, and operating materials.

To prevent unauthorized access to Confidential Information, Zoomin Groomin franchisees must take reasonable measures to secure this information. This includes safeguarding physical documents, protecting electronic data with passwords and encryption, and ensuring that only authorized personnel have access to sensitive information. Franchisees must implement these measures to maintain the confidentiality of Zoomin Groomin's proprietary information and prevent its misuse or disclosure.

However, information already in the franchisee's possession before receiving it from Zoomin Groomin, information that is public knowledge (not due to the franchisee's fault), or information rightfully received from a third party not bound by confidentiality is excluded from the definition of Confidential Information. This clarifies that franchisees are not responsible for protecting information they already possessed or that became publicly available through legitimate means.

In practical terms, this means a Zoomin Groomin franchisee must establish and maintain robust security protocols to protect Zoomin Groomin's Confidential Information. Failure to comply with these measures could result in legal action and termination of the franchise agreement. Prospective franchisees should carefully review the Non-Disclosure Agreement and understand their obligations to protect Zoomin Groomin's proprietary information.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.