Is the Competitive Liquidated Damages Hydrodog's exclusive remedy?
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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Competitive Liquidated Damages are not the exclusive remedy available to Hydrodog in the event of a franchisee violating the competitive restrictions outlined in the franchise agreement. Hydrodog retains the right to pursue other remedies.
Specifically, while a franchisee would be required to pay partial liquidated damages equal to the then-current initial franchise fee within 15 calendar days of violating the competitive restriction, this payment is considered a reasonable estimate of fair compensation for some, but not all, of the damages, costs, and expenses Hydrodog will incur.
Therefore, Hydrodog is not limited to only collecting the Competitive Liquidated Damages. They can also seek actual or consequential damages, injunctive relief to prevent future violations of the competitive restriction, and assert that they have no adequate remedy at law in the event of a breach. This means that Hydrodog has multiple avenues for recourse if a franchisee violates the competitive restrictions, providing them with greater protection of their brand and market.