Can a Hydrodog franchisee be associated with a Competitive Business as a consultant during the restricted period?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) 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 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's Territory in operation or under development on the later of (a) the effective date of the termination or expiration of this Agreement or (b) the date on which you cease to have any direct or indirect interest in a Competitive Business;
- (d) perform services as a director, officer, Manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever located;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee is restricted from associating with a Competitive Business in several capacities. The document specifies that during the term of the agreement, a franchisee cannot act as a consultant for a Competitive Business, wherever that business is located. A "Competitive Business" is defined broadly as any business offering pet grooming, care, products, or services that are similar to those offered by Hydrodog, excluding other Hydrodog franchises.
This restriction extends beyond direct ownership or employment. It includes indirect interests, such as through a spouse or child, and covers roles as an owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent. The geographic scope of these restrictions includes the franchisee's territory, areas within 25 miles of the territory, and areas within 25 miles of any other Hydrodog Business's territory.
These competitive restrictions are in place to protect Hydrodog's market position and confidential information. The Franchise Agreement states that violating these restrictions could result in financial penalties, including the payment of liquidated damages equal to Hydrodog's then-current initial franchise fee. Hydrodog also retains the right to seek additional damages and legal remedies, including injunctive relief, for breaches of the competitive restrictions.