Under the Zoomin Groomin Non-Disclosure Agreement, is the Recipient allowed to indirectly communicate Confidential Information?

According to the 2025 Zoomin Groomin Franchise Disclosure Document, the Recipient is prohibited from indirectly communicating Confidential Information. The Non-Disclosure Agreement states that the Recipient shall not, directly or indirectly, during the term of the 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 Zoomin Groomin.

This means a prospective Zoomin Groomin franchisee is restricted from sharing any confidential information, whether directly or through another party. Confidential Information includes all information or data (oral, written, and electronic) disclosed or furnished by Zoomin Groomin to the 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.

The agreement also requires the Recipient to take reasonable measures to prevent unauthorized persons or entities from accessing Confidential Information in the Recipient's possession. This obligation to maintain confidentiality remains 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.

This clause is typical in franchise agreements to protect the franchisor's proprietary information and maintain a competitive advantage. Franchisees should carefully review the definition of Confidential Information and understand the scope of these restrictions before signing the agreement.