Does the competitive restriction for Hydrodog apply to businesses that grant licenses to others?

According to Hydrodog's 2025 Franchise Disclosure Document, the competitive restriction applies to businesses that grant licenses to others. The FDD defines a "Competitive Business" as any business or facility that owns, operates, manages, grants, sells, offers, or supports franchises or licenses to others. This definition extends to businesses involved in pet grooming, pet care, pet products, or services that are similar to those offered by HydroDog, whether existing now or developed in the future.

This means that as a Hydrodog franchisee, you would be restricted from involvement with any business that grants franchises or licenses for pet-related services that compete with Hydrodog. This restriction is broad and covers various business models, including mobile, fixed, internet-based, and catalog-based operations. The only exceptions are existing HydroDog businesses under a franchise agreement with Hydrodog or any business that Hydrodog, at its sole discretion, determines not to be competitive.

This clause is significant for prospective franchisees as it limits their ability to engage in other business ventures, particularly within the pet industry. It is important to carefully consider this restriction and its potential impact on future business opportunities before investing in a Hydrodog franchise. Franchisees should seek clarification from Hydrodog regarding specific activities that may be considered competitive to avoid potential conflicts.