Does the competitive restriction for Hydrodog apply to businesses operating within 25 miles of *any* other HydroDog Business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
:
- (a) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, other than your HydroDog Business;
- (b) have any direct or indirect controlling interest as a disclosed or beneficial owner in a Competitive Business, wherever located;
- (c) have any direct or indirect interest (e.g. through a spouse or child) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, member, Manager, representative or agent or in any other capacity in any Competitive Business operating (i) within the Territory; (ii) within twenty-five (25) miles of the Territory; or (iii) within twenty-five (25) miles of any other HydroDog Business's Territory in operation or under development on the later of (a) the effective date of the termination or expiration of this Agreement or (b) the date on which you cease to have any direct or indirect interest in a Competitive Business;
- (d) perform services as a director, officer, Manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever located;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the competitive restriction does extend to businesses operating within 25 miles of other Hydrodog locations. Specifically, the document states that franchisees are restricted from having an interest in a Competitive Business operating within twenty-five (25) miles of any other HydroDog Business's Territory in operation or under development. This restriction is effective from the later of either the termination or expiration date of the agreement, or the date on which the franchisee ceases to have any direct or indirect interest in a Competitive Business.
This means that after the franchise agreement ends, a former Hydrodog franchisee cannot be involved with a competing pet grooming business within their former territory, within 25 miles of that territory, or within 25 miles of any other existing or developing Hydrodog territory. This restriction applies to various forms of involvement, including ownership, investment, or acting as a director, officer, manager, employee, or consultant for a Competitive Business. The definition of a "Competitive Business" is broad, encompassing any business offering pet grooming, pet care, or related services that are similar to those offered by Hydrodog.
This non-compete clause is designed to protect Hydrodog's market and brand. It prevents former franchisees from using the knowledge and experience gained while operating a Hydrodog franchise to directly compete with the system. Prospective franchisees should carefully consider the implications of this restriction, especially if they plan to remain in the pet care industry after leaving the Hydrodog system. The franchisee is prevented from operating a competitive business within the specified distances, regardless of whether it is near their own territory or another Hydrodog location's territory.