Must a Hydrodog franchisee provide written notice to both the other franchisee and the franchisor before servicing a client in another franchisee's territory?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
entation, photos, video tours, etc. You shall be required to furnish such verification within seventy-two (72) hours of our request. We have the right to make personal visits without notice to your HydroDog Business.
- 6.19 Encroachment Fee. 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 una
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee must obtain written permission from both the other franchisee whose territory contains the prospective client and from Hydrodog itself before performing services in another franchisee's designated territory. The franchisee must send a written request to the other franchisee and provide a copy of this request to Hydrodog for approval. Neither Hydrodog nor the other franchisee is obligated to grant permission. If permission is granted by both parties, the franchisee can service the client, provided they meet the standards outlined in the Operations Manual.
Failure to obtain the required permissions or provide written notice to both the other franchisee and Hydrodog constitutes a violation of the Franchise Agreement. If a franchisee violates this agreement by servicing a client in another franchisee's territory without permission or proper notification, Hydrodog will provide written notice of the violation. The franchisee must then cease providing services to the client within 48 hours, although they may complete any pre-scheduled appointments within the next seven days to maintain customer goodwill.
In addition to ceasing services, the franchisee may be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee. Furthermore, engaging in three or more unauthorized territorial encroachments within any twelve consecutive month period constitutes a material breach of the Franchise Agreement, potentially leading to immediate termination of the agreement at Hydrodog's discretion.
This policy is designed to protect each Hydrodog franchisee's territory and customer base, ensuring that franchisees respect each other's designated areas. It also gives Hydrodog oversight and control over territorial issues. Prospective franchisees should understand these restrictions and the potential financial and contractual consequences of violating them.