If a provision restricting competitive activities is deemed unenforceable, to what extent will Hydrodog enforce such provision?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You and we agree that: (a) the time period, geographic area, and scope of the competitive restrictions contained in this Agreement are reasonably necessary to protect our localized efforts and the Franchisor's efforts to develop HydroDog Businesses throughout the U.S.; and (b) to the extent that any portion of this Agreement is deemed unenforceable by virtue of its scope, area, HydroDog activity, or duration, but may be made enforceable by modifying any or all thereof; this Agreement will be enforced to the fullest extent permissible under the laws or public policies of the jurisdiction in which enforcement is sought, and such modified provision will be enforced to the fullest extent.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement contains clauses related to severability and substitution regarding competitive restrictions. Hydrodog states that the time period, geographic area, and scope of the competitive restrictions are reasonably necessary to protect their localized and national efforts.
Specifically, Hydrodog will enforce the agreement to the fullest extent permissible under the laws or public policies of the jurisdiction where enforcement is sought. If a portion of the agreement is deemed unenforceable due to its scope, area, HydroDog activity, or duration, but can be made enforceable by modifying any or all of these aspects, the agreement will be modified and enforced to the fullest extent permissible.
This means that if a court finds a specific part of the non-compete agreement too broad or restrictive, the court may modify the provision to make it enforceable, and Hydrodog will pursue enforcement of the modified provision. This clause aims to ensure that the competitive restrictions are upheld as much as possible while remaining within legal boundaries.