If I have not acquired a Successor Franchise, for how long after termination or expiration of the HydroDog agreement are competitive restrictions in place?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Hydrodog's 2025 Franchise Disclosure Document, if a franchisee does not acquire a Successor Franchise, they are subject to competitive restrictions for a period of two years. This restriction begins on the effective date of the termination or expiration of the franchise agreement. During this two-year period, the franchisee and their owners are prohibited from having any direct or indirect interest in a Competitive Business. This includes being an owner, investor, partner, director, officer, employee, consultant, member, manager, representative, or agent in any Competitive Business.
The competitive restriction applies within the franchisee's original Territory. A Competitive Business is defined broadly as any business that offers pet grooming, pet care, pet products, or services that are similar to those offered by Hydrodog. This includes mobile, fixed, internet, or catalog-based businesses. The definition also includes businesses that own, operate, manage, grant, sell, offer, or support franchises or licenses to others to do so. Hydrodog retains the sole discretion to determine what constitutes a Competitive Business.
This restriction is in place to protect Hydrodog's interests and goodwill. The franchise agreement states that violating these competitive restrictions will result in the franchisee paying liquidated damages. These damages are equal to Hydrodog's then-current initial franchise fee. Additionally, Hydrodog is entitled to recover all costs, including attorney's fees, incurred in connection with the collection of liquidated damages and the enforcement of its rights. The agreement explicitly states that these damages are not the exclusive remedy and Hydrodog may seek other damages or injunctive relief for violations of the competitive restrictions.