What is the deadline for a Hydrodog franchisee to cease providing services to a client in another franchisee's territory after receiving notice of violation?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
he Other Designated Territory. If you nevertheless service the client in the Other Designated Territory, or fail to provide written notice to the Other Franchisee and we as required by this Section, you shall be in violation of this Agreement. In such a case, we shall provide written notice to you, and within ten (10) days of receiving written notice of such violation, you: (i) must, within forty-eight (48) hours, cease providing services to the client in the Other Designated Territory, except for any pre-scheduled appointments within the next seven (7) days which may be completed to maintain customer goodwill; and (ii) may be required to pay an encroachment fee of five hundred dollars ($500) to us and five hundred dollars ($500) to the Other Franchisee. Additionally, if you engage in three (3) or more una
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee services a client in another franchisee's designated territory without permission, Hydrodog will provide written notice of the violation. Upon receiving this notice, the franchisee must cease providing services to the client within 48 hours. However, the franchisee is allowed to complete any pre-scheduled appointments within the next seven days to maintain customer goodwill.
This policy is designed to protect each Hydrodog franchisee's territory and customer base. By adhering to these rules, franchisees can avoid potential conflicts and ensure fair competition within the Hydrodog system. The encroachment policy underscores the importance of respecting territorial boundaries and obtaining proper authorization before providing services outside of one's designated area.
Failure to comply with these requirements can result in financial penalties. The franchisee may be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee whose territory was encroached upon. Furthermore, repeated violations, defined as three or more unauthorized territorial encroachments within a 12-month period, can lead to a material breach of the Franchise Agreement and potential termination of the agreement at Hydrodog's discretion. This highlights the seriousness with which Hydrodog treats territorial violations and the potential consequences for franchisees who disregard these rules.