What geographic areas are included in the non-compete restrictions for a Hydrodog franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 directly or indirectly marketing, soliciting, or performing services in another franchisee's territory. If a Hydrodog franchisee wishes to provide services in another franchisee's designated territory, they must obtain written permission from both the other franchisee and Hydrodog itself. Hydrodog and the other franchisee are not obligated to grant this permission. If a franchisee proceeds to offer services in another franchisee's territory without the required permission, it is considered a violation of the agreement.
If a Hydrodog franchisee violates the territorial restrictions, they must cease providing services to the client in the other franchisee's territory within 48 hours of receiving written notice, although they may complete pre-scheduled appointments within the next seven days to maintain customer goodwill. Additionally, the violating franchisee may be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee. Engaging in three or more unauthorized territorial encroachments within a 12-month period constitutes a material breach of the agreement and may result in immediate termination of the franchise agreement at Hydrodog's discretion.
Hydrodog retains the right to sell or distribute products or services anywhere, without restrictions, except for mobile facilities providing pet grooming services under the Hydrodog brand. They can also distribute branded products through any outlet, including retail stores or electronic means, located anywhere. Hydrodog can operate or authorize others to operate businesses outside a franchisee's territory, businesses not substantially similar to the Hydrodog business, or businesses that do not use the Hydrodog marks, regardless of location. These competitive restrictions are designed to protect Hydrodog's localized efforts and its development of Hydrodog businesses throughout the U.S., while also ensuring that franchisees are not unreasonably deprived of their ability to earn a living.