What must a Hydrodog franchisee do to maintain the Territory rights granted in the Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You must maintain one (1) HydroDog Vehicle for every 100,000 population (or fraction thereof) in your Territory. You must add each required additional HydroDog Vehicle within six (6) months after commencing operations or within six (6) months of any population increase that triggers the requirement for an additional vehicle based on the above ratio. Your failure to add required HydroDog Vehicles within these
timeframes will constitute a default under this Agreement, and we reserve the right to terminate this Agreement or otherwise alter the terms of your territorial rights in our sole discretion.
You may not directly or indirectly market, solicit or perform any Services in another franchisee's Territory.
If you wish to perform services within the Territory of another franchisee (the "Other Designated Territory"), you must first seek written permission from the franchisee whose Other Designated Territory contains the prospective client's principal residence or location (the "Other Franchisee").
We must also receive a copy of the written request, and shall approve or disapprove any such request in writing.
Neither we nor the Other Franchisee is under any obligation or duty to grant you permission to perform Services in the Other Designated Territory.
If you are granted permission to perform services to clients in the Other Designated Territory by both the Other Franchisee and us, you may service the client as long as you are able to perform the services according to the standards as described in the Operations Manual and any applicable addendum.
If you are not granted permission from either the Other Franchisee or us, you may not service the customer in the Other Designated Territory.
If you nevertheless service the client in the Other Designated Territory, or fail to provide written notice to the Other Franchisee and we as required by this Section, you shall be in violation of this Agreement.
In such a case, we shall provide written notice to you, and within ten (10) days of receiving written notice of such violation, you: (i) must, within forty-eight (48) hours, cease providing services to the client in the Other Designated Territory, except for any pre-scheduled appointments within the next seven (7) days which may be completed to maintain customer goodwill; and (ii) may be required to pay an encroachment fee of five hundred dollars ($500) to us and five hundred dollars ($500) to the Other Franchisee.
Additionally, if you engage in three (3) or more unauthorized territorial encroachments during any twelve (12) consecutive month period, such repeated violations shall constitute a material breach of this Agreement and may result in immediate termination of this Agreement at our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee's territory rights are tied to maintaining the required number of Hydrodog vehicles. Specifically, the franchisee must maintain one Hydrodog Vehicle for every 100,000 in population within their territory.
Failure to maintain the required number of vehicles can result in Hydrodog terminating the Franchise Agreement or altering the terms of the territorial rights. The franchisee must add any required additional Hydrodog Vehicles within six months after commencing operations or within six months of any population increase that triggers the need for an additional vehicle.
In addition, franchisees must not directly or indirectly market, solicit, or perform any services in another franchisee's territory. To perform services in another franchisee's territory, a franchisee must first seek written permission from that other franchisee and from Hydrodog. Servicing a client in another franchisee's territory without permission, or failing to provide written notice, constitutes a violation of the agreement. A franchisee may be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee. Three or more unauthorized territorial encroachments within any 12 consecutive month period constitutes a material breach of the agreement and may result in immediate termination of the agreement.