When is the Hydrodog Encroachment Fee due?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Encroachment Fee | $1,000 for each instance | Upon demand | If you provide any services to customers in another franchisee's territory without permission you shall pay an encroachment fee of $500 to us and $500 to the franchisee who owns the territory. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Encroachment Fee is due upon demand. This fee is incurred if a Hydrodog franchisee provides services to customers in another franchisee's exclusive territory without obtaining prior permission. The fee totals $1,000 for each instance of encroachment. Of this amount, $500 is paid to the franchisor, Hydrodog, and the remaining $500 is paid to the franchisee whose territory was encroached upon.
This fee serves to protect the territorial rights granted to each Hydrodog franchisee. By enforcing this fee, Hydrodog aims to discourage franchisees from operating outside their designated areas and potentially undermining the business of other franchisees within the system. This helps maintain a fair and balanced competitive environment among franchisees.
For a prospective Hydrodog franchisee, it is crucial to understand the boundaries of their territory and to always seek permission before providing services outside of it. Failure to do so can result in the imposition of the Encroachment Fee, which can impact profitability. Franchisees should familiarize themselves with the specific terms and conditions outlined in the Franchise Agreement regarding territorial rights and encroachment policies to avoid any unintentional violations.