Does the definition of 'Competitive Business' for Hydrodog include businesses that 'support' franchises?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The words "Competitive Business" refers to any business or facility that owns, operates, manages, grants, sells, offers or supports franchises or licenses to others to do so, any mobile, fixed, or internet or catalog based business or facility that provides pet grooming, pet care, pet products or services, or any other pet-related products and services that are identical, similar to, competitive with, or substitutable for the Products and Services offered by HydroDog Businesses, whether now existing or hereafter developed, excluding any HydroDog Business under a franchise agreement with us, or any other business that we, at our sole discretion, determine to be competitive.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a "Competitive Business" is defined to include businesses that support franchises or licenses to others. This definition is important because it restricts a franchisee's involvement in competitive businesses during and after the franchise agreement term.
Specifically, the definition encompasses any business or facility that owns, operates, manages, grants, sells, offers, or supports franchises or licenses to others. This broad definition means that franchisees are prohibited from being involved in any capacity with businesses that franchise similar pet grooming or pet-related services. This restriction extends to mobile, fixed, internet, or catalog-based businesses offering pet grooming, pet care, pet products, or services that compete with Hydrodog.
This clause aims to protect Hydrodog's market position and prevent franchisees from using the franchisor's confidential information and system to benefit competing businesses. The FDD also states that Hydrodog has the sole discretion to determine what constitutes a competitive business, providing an additional layer of protection for the brand. Franchisees should carefully consider this definition and its implications for any current or future business ventures they may have in mind.