Does the Hydrodog agreement acknowledge that competitive restrictions will not unreasonably deprive the franchisee of their ability to earn a living?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
llection of Liquidated Damages as well as enforcing its rights. Without limiting the foregoing, the Competitive Liquidated Damages will not be the Franchisor's exclusive remedy, will not prevent us from seeking other actual or consequential damages, injunctive relief enjoining future violations of the Competitive Restriction, nor will it in any way limit the Franchisor' right to assert that we have no adequate remedy at law in the event of breach.
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- Severability and Substitution. You acknowledge and agree that these competitive restrictions will not unreasonably deprive you of your ability to earn a living or engage other business activities. You and we agree that: (a) the time period, geographic area, and scope of the competitive restrictions contained in this Agreement are reasonably necessary to protect our localized efforts and the Franchisor's efforts to develop HydroDog Businesses throughout the U.S.; and (b) to the extent that any portion of this Agreement is deemed unenforceable by virtue of its scope, area, HydroDog activity, or duration, but may be made enforceable by modifying any or all thereof;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement does acknowledge that the competitive restrictions will not unreasonably deprive the franchisee of their ability to earn a living or engage in other business activities. The agreement states that the time period, geographic area, and scope of the competitive restrictions are reasonably necessary to protect Hydrodog's localized efforts and the franchisor's efforts to develop HydroDog businesses throughout the U.S.
Furthermore, the agreement specifies that if any portion of the agreement is deemed unenforceable due to its scope, area, HydroDog activity, or duration, it will be modified and enforced to the fullest extent permissible under the laws or public policies of the jurisdiction where enforcement is sought. This clause ensures that the competitive restrictions are applied reasonably and do not unduly restrict the franchisee's ability to earn a living.
Additionally, the Hydrodog FDD states that franchisees acknowledge they possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this section will not deprive you of your personal goodwill or ability to earn a living.