If a Hydrodog franchisee desires to provide services to a customer account belonging to another franchisee's territory, what is the first required action?
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, if a franchisee wants to provide services to a customer account that falls within another franchisee's territory, the first step is to seek written permission from the franchisee who holds the rights to that territory. This is explicitly stated in Item 23, which outlines the process for handling such situations. The franchisee seeking to provide services must obtain this written permission before proceeding.
In addition to getting permission from the other franchisee, the requesting franchisee must also provide a copy of the written request to Hydrodog. Hydrodog must then approve or disapprove the request in writing. It's important to note that neither Hydrodog nor the other franchisee is obligated to grant permission. This means that even if the franchisee seeks permission, it may not be granted, preventing them from servicing the client in the other franchisee's territory.
If a Hydrodog franchisee proceeds to service a client in another franchisee's territory without obtaining the necessary written permission from both the other franchisee and Hydrodog, they will be in violation of the Franchise Agreement. This violation can lead to penalties, including a requirement to cease providing services to the client (with a short grace period for pre-scheduled appointments) and the potential for fines. Specifically, the franchisee may be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee. Repeated violations could even result in the termination of the Franchise Agreement.