If a Hydrodog franchisee breaches the agreement, is Hydrodog entitled to an injunction?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
re to violate the Competitive Restriction set forth in this Agreement. Your payment of the Competitive Liquidated Damages will not be considered a penalty, but instead a reasonable estimate of fair compensation to the Franchisor for some of, but not all of, the damages, costs and expenses it will incur if you violate the Competitive Restriction. The Franchisor is also be entitled to recover all costs, including attorneys' fees incurred in connection with collection of Liquidated Damages as well as enforcing its rights. Without limiting the foregoing, the Competitive Liquidated Damages will not be the Franchisor's exclusive remedy, will not prevent us from seeking other actual or consequential damages, injunctive relief enjoining future violations of the Competitive Restriction, nor will it in any way limit the Franchisor' right to assert that we have no adequate remedy at law in the event of breach.
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- Severability and Substitution. You acknowledge and agree that these competitive restrictions will not unreasonably deprive you of your ability to earn a living or engage other business activities.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog is entitled to seek injunctive relief if a franchisee violates the competitive restrictions outlined in the franchise agreement. Specifically, Hydrodog can pursue an injunction to prevent further breaches of these restrictions. This means that if a franchisee engages in activities that violate the competitive terms, Hydrodog can ask a court to order the franchisee to stop such activities.
In addition to injunctive relief, Hydrodog is entitled to recover all costs, including attorneys' fees, incurred while collecting liquidated damages and enforcing its rights. The pursuit of injunctive relief does not prevent Hydrodog from seeking other actual or consequential damages resulting from the breach. This comprehensive approach ensures that Hydrodog can address both the immediate violation and any long-term harm caused by the franchisee's actions.
The franchise agreement specifies that the competitive restrictions are deemed necessary to protect Hydrodog's localized and broader development efforts. The agreement also includes a severability clause, stating that if any part of the competitive restrictions is deemed unenforceable, the agreement will be modified and enforced to the fullest extent permissible under the law. This provision aims to ensure that the competitive restrictions remain effective and enforceable, providing Hydrodog with a strong legal basis to protect its interests and the integrity of its franchise system.