Does Hydrodog allow exceptions to the competitive restrictions, and if so, under what conditions?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
dencing such subordination and otherwise to comply with this Agreement;
- (k) subject to state law, you and your transferring owners have executed a noncompetition covenant in favor of us and the transferee, agreeing to be bound by the post-term competitive restrictions contained in this Agreement, commencing on the effective date of the transfer; and
- (l) you and your transferring owners have agreed that, except with respect to other HydroDog Businesses you own and operate, you and they will not directly or indirectly at any time or in any manner identify yourself or themselves or any business as a current or former HydroDog Business, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark, or other indicia of a HydroDog Business in any manner that suggests or indicates a current or past connection or association with us, or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a current or past connection or association with us.
If the proposed transfer is among your owners, you will not be required to sign a general release, although the transferee is required to reimburse us for any administrative costs we incur in connection with the transfer.
15.4 Transfer to a Business Entity.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, the competitive restrictions do not apply to other Hydrodog Businesses that the franchisee owns and operates. This means a franchisee can own and operate multiple Hydrodog franchises without violating the non-compete agreement.
Hydrodog's FDD also states that if any portion of the agreement is deemed unenforceable due to its scope, area, or duration, the agreement will be modified and enforced to the fullest extent permissible under the laws of the jurisdiction where enforcement is sought. This implies that the franchisor is willing to work within legal boundaries to ensure some form of competitive restriction is upheld.
Furthermore, the FDD specifies that the franchisee acknowledges the competitive restrictions will not unreasonably deprive them of their ability to earn a living or engage in other business activities. This suggests that Hydrodog recognizes the need for franchisees to maintain their livelihood and that the restrictions are designed to protect the brand rather than prevent the franchisee from working altogether. However, the franchisee must still adhere to the confidentiality obligations and cannot use Hydrodog's confidential information in any other business.