If a Hydrodog franchisee is an employee, does the agreement change their 'at will' status?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
OPERATIVE TERMS:
Accordingly, you and we agree as follows:
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- Confidentiality. You will (a) not use the Confidential Information in any other business or capacity; (b) maintain the absolute confidentiality of the Confidential Information during and after the term of the Franchise Agreement and your employment by, or association with, us; (c) not make unauthorized copies of any portion of the Confidential Information disclosed in written form; and (d) comply with all procedures we prescribe from time to time to prevent unauthorized use or disclosure of the Confidential Information.
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- Competitive Restrictions. During the time that you are associated with us, as an employee or independent contractor and for a period of two (2) years following the termination of such association, unless we and the Franchisor otherwise permit in writing and except on our behalf, you will not:
- (a) 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 business or facility owning, operating, managing, or granting franchises or licenses to others to do so, or in any Competitive Business operating:
- (i) within the Territory;
- (ii) within twenty-five (25) miles of the Territory; or
- (iii) within twenty-five (25) miles of any other HydroDog Business or its Territory in operation or under construction on the later of the effective date of the termination or expiration of your employment or the date on which you comply with such restrictions (see Section 5 below).
- (b) on behalf of yourself or any other person, or in any capacity associated with any other person or entity, solicit, divert, take away, or interfere with any of the business, customers, vendors, suppliers, franchisees or contractors of ours or the Franchisor, our or its affiliates or any of its franchisees as may exist during the term of this Agreement or thereafter.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
Based on the 2025 Hydrodog Franchise Disclosure Document, the agreement outlines certain restrictions and obligations for individuals associated with Hydrodog, whether as employees or independent contractors. Specifically, during the period of association with Hydrodog and for two years post-termination, individuals are restricted from engaging in competitive businesses within a defined territory. This includes having any direct or indirect interest in businesses that own, operate, manage, or franchise similar services within the franchisee's territory, or within 25 miles of it, or any other Hydrodog location.
Additionally, these individuals are prohibited from soliciting or interfering with Hydrodog's business relationships, including customers, vendors, suppliers, franchisees, or contractors. This suggests that while the document does not explicitly address 'at-will' employment status, it imposes significant post-employment restrictions that could affect an individual's future employment options. The agreement requires adherence to confidentiality, preventing the use or disclosure of confidential information both during and after association with Hydrodog.
These terms are outlined in a 'Confidentiality and Non-Solicitation and Non-Competition Agreement' that any General Manager or officer must sign as a condition of their employment or appointment. All employees, independent contractors, agents, or representatives who may have access to confidential information must also sign a standard confidentiality agreement. While the FDD does not directly state that the agreement alters an 'at-will' employment status, the extensive restrictions placed on competitive activities and solicitation post-association could be viewed as a modification of the typical freedoms associated with 'at-will' employment.
Prospective franchisees should seek clarification from Hydrodog regarding the precise nature of the employment relationship and how these restrictions interact with local employment laws. It is important to understand the full scope of these obligations and how they might impact future career opportunities after leaving the Hydrodog franchise.