After receiving notice of violation for encroachment, can a Hydrodog franchisee complete pre-scheduled appointments?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
he 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. In such a case, we shall provide written notice to you, and within ten (10) days of receiving written notice of such violation, you: (i) must, within forty-eight (48) hours, cease providing services to the client in the Other Designated Territory, except for any pre-scheduled appointments within the next seven (7) days which may be completed to maintain customer goodwill; and (ii) may be required to pay an encroachment fee of five hundred dollars ($500) to us and five hundred dollars ($500) to the Other Franchisee. Additionally, if you engage in three (3) or more una
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee who violates the agreement by servicing a client in another franchisee's territory without permission will receive written notice of the violation. After receiving such notice, the franchisee must cease providing services in the other designated territory within 48 hours. However, there is an exception to this rule.
The Hydrodog franchisee is allowed to complete any pre-scheduled appointments within the next seven days following the notice. This exception is included to maintain customer goodwill. In addition to ceasing services, the franchisee may also be required to pay an encroachment fee of $500 to Hydrodog and $500 to the other franchisee whose territory was encroached upon.
It is important to note that repeated unauthorized territorial encroachments can lead to serious consequences. If a Hydrodog franchisee engages in three or more unauthorized encroachments within a 12-month period, it will be considered a material breach of the Franchise Agreement. This can result in immediate termination of the agreement at Hydrodog's discretion. Therefore, franchisees must be diligent in obtaining proper permissions before providing services outside their designated territory.