What is the duration of the competitive restriction for a Hydrodog franchisee if they are an employee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
During the time that you are associated with us, as an employee or independent contractor and for a period of two (2) years following the termination of such association, unless we and the Franchisor otherwise permit in writing and except on our behalf, you will not:
- (a) 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 business or facility owning, operating, managing, or granting franchises or licenses to others to do so, or 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 or its Territory in operation or under construction on the later of the effective date of the termination or expiration of your employment or the date on which you comply with such restrictions (see Section 5 below).
- (b) on behalf of yourself or any other person, or in any capacity associated with any other person or entity, solicit, divert, take away, or interfere with any of the business, customers, vendors, suppliers, franchisees or contractors of ours or the Franchisor, our or its affiliates or any of its franchisees as may exist during the term of this Agreement or thereafter.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee is associated with Hydrodog as an employee, they are subject to a competitive restriction both during their association and for a period of two years following the termination of that association. This restriction prevents them from engaging in any Competitive Business, unless Hydrodog and the Franchisor provide written permission otherwise.
The competitive restriction applies to any direct or indirect interest in a business that owns, operates, manages, or grants franchises or licenses to others, or in any Competitive Business. This includes roles such as owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent. The restriction is applicable within the franchisee's territory, within 25 miles of that territory, or within 25 miles of any other Hydrodog Business or its territory that is in operation or under construction.
Additionally, the franchisee is prohibited from soliciting, diverting, taking away, or interfering with any of Hydrodog's or the Franchisor's business, customers, vendors, suppliers, franchisees, or contractors. This restriction remains in effect during the term of the Franchise Agreement and thereafter. These measures are in place to protect Hydrodog's confidential information and business interests by preventing franchisees from using their knowledge and access gained during their association with Hydrodog to unfairly compete against the franchise system.