What post-termination obligations does a transferring Hydrodog franchisee remain bound by?
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 Hydrodog's 2025 Franchise Disclosure Document, a transferring franchisee remains bound by certain obligations even after the transfer is complete. Specifically, the transferring franchisee must execute a noncompetition covenant in favor of Hydrodog and the transferee, agreeing to adhere to the post-term competitive restrictions outlined in the franchise agreement. This restriction begins on the effective date of the transfer.
Additionally, the transferring franchisee and their owners must agree that they will not, at any time, directly or indirectly identify themselves or any business as a current or former Hydrodog business, except with respect to other Hydrodog businesses they own and operate. They are prohibited from using any Hydrodog marks or any similar imitations that suggest a connection with Hydrodog. This includes refraining from using any trade names, trademarks, service marks, or commercial symbols that imply a current or past association with Hydrodog.
These obligations ensure that the transferring franchisee does not unfairly compete with Hydrodog or the new franchisee after the transfer. The non-compete agreement protects Hydrodog's market position and confidential information, while the restrictions on using Hydrodog's branding prevent confusion among customers and maintain the integrity of the Hydrodog brand. Prospective franchisees should carefully review these post-termination obligations to understand the full scope of their responsibilities even after transferring their franchise.