Can Hydrodog operate a business anywhere that is not substantially similar to the franchised Hydrodog business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Under the Franchise Agreement we (and our affiliates) retain the right in our sole discretion to:
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- Own and/or operate ourselves or authorize others to own and/or operate (a) any business located outside the Territory, whether or not using the Marks and/or System, (b) any business anywhere, whether using the Marks and/or System or not, which is not substantially similar to the business franchised to you under the Agreement and/or (c) any business anywhere which does not use the Marks;
We are not required to pay you any amount if we exercise any of these rights.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains specific rights regarding business operations. Hydrodog has the right to own and/or operate businesses anywhere, whether or not using the Hydrodog marks and/or system, provided that the business is not substantially similar to the franchised Hydrodog business. Additionally, Hydrodog can operate any business anywhere that does not use the Hydrodog marks.
This means that while franchisees operate within a defined territory with certain restrictions, Hydrodog maintains the flexibility to engage in diverse business ventures without necessarily being bound by the same constraints as its franchisees. This could include businesses in different industries or those that offer complementary services without directly competing with the core Hydrodog franchise model.
For a prospective franchisee, this indicates that Hydrodog may have other business interests that could potentially evolve and operate independently of the franchise system. While these ventures would not be substantially similar to the franchised business, franchisees should be aware that Hydrodog's strategic direction might extend beyond the franchise network. It is important to understand that Hydrodog is not required to pay franchisees any amount if they exercise any of these rights.