What is the Hydrodog Encroachment Fee for providing services in another franchisee's territory?

According to Hydrodog's 2025 Franchise Disclosure Document, an encroachment fee is charged if a franchisee provides services to customers in another franchisee's protected territory without permission. The encroachment fee is $1,000 for each instance. Of this amount, $500 is paid to Hydrodog, and $500 is paid to the franchisee who owns the territory that was encroached upon. This fee is designed to protect franchisees' territories and compensate them for any potential loss of business due to unauthorized service within their area.

This policy highlights the importance of respecting territorial boundaries within the Hydrodog franchise system. Franchisees must be careful to avoid providing services outside of their designated territory unless they have obtained explicit permission from both Hydrodog and the other franchisee. The encroachment fee serves as a deterrent against unauthorized expansion and helps maintain the integrity of the franchise network.

For a prospective Hydrodog franchisee, it is crucial to understand the defined territory and the potential consequences of encroaching on another franchisee's area. Before providing services to a customer who might be located in another territory, a franchisee should confirm the customer's location and obtain the necessary permissions to avoid incurring the $1,000 encroachment fee. This policy underscores the need for clear communication and adherence to the franchise agreement to maintain positive relationships within the Hydrodog franchise system.