Under what conditions would the confidentiality obligation of the Zoomin Groomin Non-Disclosure Agreement cease?
Zoomin_Groomin Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient's duty to hold Confidential Information in confidence shall remain in effect beyond the termination of any relationship between the parties and until the information at issue is no longer confidential, provided that the information is not made non-confidential as a result of a breach by any person or party having a duty of confidentiality.
Source: Item 9 — 01. Financial Statements and Exhibits. (FDD pages 68–156)
What This Means (2025 FDD)
According to Zoomin Groomin's 2025 Franchise Disclosure Document, the Recipient's duty to maintain the confidentiality of the Confidential Information remains in effect beyond the termination of any relationship between the parties. This obligation continues until the information is no longer confidential.
However, there is an exception: the confidentiality obligation ceases if the information becomes non-confidential due to a breach by any person or party who had a duty of confidentiality. This means that if the confidentiality is broken by someone who was obligated to keep the information secret, the Recipient is then released from their duty to maintain confidentiality, provided that the Recipient was not the party that caused the breach.
This condition is important for a prospective Zoomin Groomin franchisee to understand, as it clarifies the boundaries of their confidentiality obligations. While the duty to protect confidential information is long-lasting, it is not absolute and can be nullified if the information enters the public domain through the fault of another party with a similar duty.