Can a Hydrodog franchisee operate their Hydrodog Business outside of their assigned territory?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You cannot operate your HydroDog Business outside the Territory or relocate without our prior written approval. If, in our business judgment, there is a change in character of your Territory sufficiently detrimental to its business potential to warrant your HydroDog Business's relocation to a new geographic area, we will permit you to relocate your HydroDog Business.
You must notify us of all inquiries for Products and Services received from any prospective customer outside of your Territory. We will forward these types of inquiries to the franchisee, if any, in whose Territory the prospective customer account is situated. If there is no existing franchisee within whose territory the prospective customer account is situated, we may allow you to provide services or products to such customer account for so long as the customer account is not located in the territory of another franchisee. If you obtain our approval for relocation, you must reopen your HydroDog Business within the new or modified Territory as soon as practicable, but in no event more than 30 days after our approval is given, unless we agree in writing to extend such period due to circumstances beyond your reasonable control.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are generally restricted from operating outside their assigned territory without prior written approval. The franchise is granted for mobile operations within a defined territory, described in Exhibit A of the Franchise Agreement, using common geographic definitions. While there is no minimum area for a territory, franchisees must adhere to the Territory Development Schedule, maintaining one Hydrodog vehicle per 100,000 population within their territory.
Hydrodog franchisees cannot operate their business outside of their territory or relocate without written approval from Hydrodog. However, Hydrodog may allow a franchisee to relocate if there is a detrimental change to the business potential of their territory. If relocation is approved, the franchisee must reopen their Hydrodog business in the new territory within 30 days, unless an extension is granted in writing by Hydrodog due to uncontrollable circumstances.
It's important to note that Hydrodog retains certain rights, including the ability to sell products or services anywhere, without territory restrictions, through alternative channels. They can also distribute branded products through any outlet, including retail and electronic means, regardless of location. This means that while franchisees are restricted to their territories, Hydrodog itself can operate without such limitations, potentially creating competition for franchisees. Additionally, Hydrodog may enter into agreements with National Accounts and determine who provides services to them, potentially offering these opportunities to franchisees.