Does the Hydrodog franchise agreement allow for the recovery of actual damages in a dispute?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting the foregoing, the Competitive Liquidated Damages will not be the Franchisor's exclusive remedy, will not prevent us from seeking other actual or consequential damages, injunctive relief enjoining future violations of the Competitive Restriction, nor will it in any way limit the Franchisor' right to assert that we have no adequate remedy at law in the event of breach.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, Hydrodog has the right to seek actual or consequential damages for violations of the competitive restrictions outlined in the franchise agreement. Specifically, if a franchisee violates the competitive restrictions, Hydrodog can pursue remedies beyond the stipulated liquidated damages.
Hydrodog's ability to seek actual or consequential damages, along with injunctive relief, means that franchisees could face significant financial exposure if they breach the competitive restrictions. The agreement specifies that the payment of competitive liquidated damages does not prevent Hydrodog from seeking other forms of compensation for damages incurred due to a breach.
This clause is designed to protect Hydrodog's interests and ensure franchisees comply with the competitive restrictions. Prospective franchisees should carefully consider the scope and implications of these restrictions, as well as the potential financial consequences of violating them. It is advisable to seek legal counsel to fully understand the obligations and risks associated with this aspect of the Hydrodog franchise agreement.