What happens if I acquire a Successor Franchise after the initial HydroDog agreement terminates?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.4 Competitive Restrictions.
Subject to applicable law, upon termination or expiration of this Agreement for any reason whatsoever (and you have not acquired a Successor Franchise), you and your owners agree that for a period of two (2) years commencing on the effective date of termination or expiration neither you nor any of your owners will 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:
- (a) within the Territory;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, if you do not acquire a Successor Franchise after the initial agreement terminates, you and your owners are subject to certain competitive restrictions. For a period of two years after the termination or expiration date, you and your owners cannot have any direct or indirect interest in any Competitive Business operating within your former Territory.
These restrictions mean that you cannot be an owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent in a competing business. This restriction applies to any capacity, whether disclosed or beneficial. The purpose is to prevent you from using your knowledge of the Hydrodog system to unfairly compete against them after your franchise agreement ends.
However, if you DO acquire a Successor Franchise, these competitive restrictions do not apply. The FDD does not elaborate on the specific requirements or process for acquiring a Successor Franchise. A prospective franchisee should seek clarification from Hydrodog regarding the conditions under which a Successor Franchise may be granted and what specific obligations and benefits it entails.