Does the Hydrodog agreement allow for injunctive relief in case of a material breach?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
The Franchisor is also be entitled to recover all costs, including attorneys' fees incurred in connection with collection of Liquidated Damages as well as enforcing its rights.
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 allow for injunctive relief under specific circumstances. Specifically, Hydrodog can seek injunctive relief to prevent future violations of the competitive restrictions outlined in the agreement. This means that if a franchisee violates the competitive restrictions, Hydrodog can pursue a court order to stop the franchisee from continuing such violations.
In addition to injunctive relief, Hydrodog is entitled to recover all costs, including attorneys' fees, incurred in connection with the collection of liquidated damages and the enforcement of its rights. The agreement specifies that the payment of competitive liquidated damages will not be considered a penalty but rather a reasonable estimate of fair compensation to Hydrodog for some, but not all, of the damages, costs, and expenses it will incur if the franchisee violates the competitive restriction.
This clause protects Hydrodog's interests by allowing them to take swift legal action to prevent franchisees from engaging in activities that harm the brand or compete unfairly. It also ensures that Hydrodog can recover the costs associated with enforcing these restrictions. Prospective franchisees should carefully review the competitive restrictions outlined in the franchise agreement to understand the scope of these limitations and the potential consequences of violating them.