If a Hydrodog franchisee transfers their agreement, are they still bound by post-termination provisions?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
(k) subject to state law, you and your transferring owners have executed a noncompetition covenant in favor of us and the transferee, agreeing to be bound by the post-term competitive restrictions contained in this Agreement, commencing on the effective date of the transfer; and
(l) you and your transferring owners have agreed that, except with respect to other HydroDog Businesses you own and operate, you and they will not directly or indirectly at any time or in any manner identify yourself or themselves or any business as a current or former HydroDog Business, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark, or other indicia of a HydroDog Business in any manner that suggests or indicates a current or past connection or association with us, or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a current or past connection or association with us.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, if a franchisee transfers their agreement, they and their transferring owners must execute a noncompetition covenant in favor of Hydrodog and the transferee. This covenant means they agree to be bound by the post-term competitive restrictions outlined in the Franchise Agreement, starting from the transfer's effective date.
Furthermore, the transferring franchisee and their owners must agree not to identify themselves or any business as a current or former Hydrodog business. They cannot use any Hydrodog marks or anything that suggests a past or present connection with Hydrodog, except concerning other Hydrodog businesses they might own and operate.
This requirement ensures that the brand's integrity and market position are protected even after a transfer of ownership. The new franchisee benefits from the non-compete, while Hydrodog maintains control over its brand representation. Franchisees need to understand that selling their business does not release them from certain obligations to Hydrodog.