Are the non-competition covenants for Hydrodog subject to state law?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
r your termination without cause, of the agreement (but not expiration). |
| Provisions | Section in | Summary |
|---|---|---|
| Franchise or Other Agreement | ||
| (p) Death or disability of franchisee | Sections 15.5 and 15.6 | Franchise or an ownership interest in you must be assigned to an approved buyer within 3 months and must be run by a trained manager during the period prior to the assignment. Assignment is subject to our right of first refusal. |
| (q) | Section 10 | No interest in a competitive business, no |
| Non-competition | controlling ownership interest in, or | |
| covenants during the | performance of services for, a competitive | |
| term of the franchise | business anywhere. (subject to state law) | |
| (r) Non-competition covenants after the franchise is terminated or expires | Section 17.4; Exhibit "F" | No interest in competing business for 2 years at or within 25 miles of the Territory or within 25 miles of any Territory or any other HydroDog Business in (same restrictions apply after assignment). (subject to state law) |
| (s) | Section 20.1 | No modifications except by written agreement, |
| Modification of the | but Manuals and System Standards are subject | |
| agreement | to change. | |
| (t) Integration/merger clause | Section 21.19 | Only the terms of the Franchise Agreement (including the Manuals, System Standards, addenda and exhibits) are binding, subject to applicable state law. Notwithstanding the foregoing, nothing in the Franchise Disclosure Document, Franchise Agreement, or other documents provided to the franchisee by the franchisor is intended to limit or disclaim any representations or warranties made by the franchisor or its agents. |
| (u) Dispute resolution by arbitration or mediation | Sections 21.1 - 21.6 and 21.9 | Arbitration is required under the Franchise Agreement; except in situations in which we seek injunctive relief or seek to protect our intellectual property (Marks or Copyrights) or to enforce the non-compete or confidentiality obligations, Mediation is not required as a condition precedent to litigation. |
| (v) Choice of forum | Section 21.4 | Arbitration in Hillsborough County, Florida (subject to applicable state law). |
| (w) | Section 21.12 | Florida law applies (subject to applicable state |
| Choice of law | law). |
ITEM 18 PUBLIC FIGURES
We do not use any public figure to promote our franchise.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the non-competition covenants both during and after the franchise term are subject to state law. During the term of the franchise agreement, a franchisee cannot have any interest in a competitive business, have a controlling ownership interest in a competitive business, or perform services for a competitive business anywhere.
After the franchise is terminated or expires, the franchisee is restricted from having an interest in a competing business for two years. This restriction applies within 25 miles of the franchisee's territory or within 25 miles of any other Hydrodog business. These restrictions also apply after assignment of the franchise.
The Franchise Agreement also includes an integration/merger clause, which states that only the terms of the Franchise Agreement (including the Manuals, System Standards, addenda, and exhibits) are binding, subject to applicable state law. Furthermore, the termination of the franchise by Hydrodog with cause and the definition of curable defaults are subject to state law.