If a Hydrodog franchisee is not granted permission from either the other franchisee or the franchisor, may they service the customer in the Other Designated Territory?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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, a franchisee must receive written permission from both the other franchisee whose territory they wish to service and Hydrodog itself before performing services in that other designated territory. If either party withholds permission, the franchisee is prohibited from servicing the customer in that area.
Should a Hydrodog franchisee proceed to service a client in another franchisee's territory without obtaining the necessary permissions, or without providing written notice to both the other franchisee and Hydrodog, they will be in violation of the Franchise Agreement. In such instances, Hydrodog will issue a written notice of the violation. The franchisee must then cease providing services to the client within 48 hours, although they may complete any pre-scheduled appointments within the next seven days to maintain customer goodwill.
Furthermore, the franchisee may be required to pay an encroachment fee of $500 to Hydrodog and an additional $500 to the franchisee whose territory was encroached upon. Repeated violations, defined as three or more unauthorized territorial encroachments within any 12-month period, will constitute a material breach of the Franchise Agreement. This can result in immediate termination of the agreement at Hydrodog's discretion, highlighting the importance of adhering to territorial restrictions and obtaining proper authorization for out-of-territory services.