What other costs is Hydrodog entitled to recover in connection with the collection of Liquidated Damages?

According to Hydrodog's 2025 Franchise Disclosure Document, in the event that a franchisee violates any of the Competitive Restrictions outlined in the agreement, Hydrodog is entitled to recover all costs, including attorney's fees, incurred in connection with the collection of Liquidated Damages as well as enforcing its rights. This means that in addition to the liquidated damages themselves, a franchisee may be responsible for covering Hydrodog's legal expenses associated with pursuing the collection of those damages.

This provision is significant for prospective franchisees as it highlights the potential for additional financial burdens beyond the initial liquidated damages amount. If a franchisee breaches the competitive restrictions, they could face not only the cost of the liquidated damages but also the cost of Hydrodog's legal fees, which could potentially be substantial. This could significantly increase the financial impact of violating the agreement.

It is important for prospective franchisees to carefully review and understand the competitive restrictions outlined in the franchise agreement, as well as the potential financial consequences of violating those restrictions. Understanding the scope of these potential costs can help a franchisee make informed decisions about their business practices and ensure they are in compliance with the franchise agreement. Franchisees should seek legal counsel to fully understand their obligations and potential liabilities under the agreement.