Is Hydrodog obligated to grant permission to a franchisee to perform services in another franchisee's territory?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not directly or indirectly market, solicit or perform any Services in another franchisee's Territory.
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, franchisees are generally prohibited from marketing, soliciting, or performing services in another franchisee's designated territory. If a franchisee wishes to provide services in another franchisee's territory, they must obtain written permission from both the other franchisee and Hydrodog. Hydrodog retains the right to approve or disapprove such requests.
Neither Hydrodog nor the other franchisee is under any obligation to grant permission. If permission is granted by both parties, the franchisee can service the client as long as they meet the standards outlined in the Operations Manual. However, if permission is not granted by either the other franchisee or Hydrodog, the franchisee is prohibited from servicing the customer in the other franchisee's territory.
If a franchisee violates these territorial restrictions by servicing a client in another franchisee's territory without the required permissions or without providing written notice, they will be in violation of the Franchise Agreement. Hydrodog will provide written notice of the violation, and the franchisee must cease providing services in the other territory within 48 hours, although pre-scheduled appointments within the next seven days may be completed. The franchisee may also be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee.
Repeated violations of territorial restrictions can lead to more severe consequences. If a franchisee engages in three or more unauthorized territorial encroachments within a twelve-month period, it constitutes a material breach of the Franchise Agreement, potentially resulting in immediate termination of the agreement at Hydrodog's discretion. This highlights the importance of adhering to the territorial restrictions and obtaining proper permissions before providing services outside of the designated territory.