Does Hydrodog reserve the right to own and operate businesses anywhere that do not use the Hydrodog Marks?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.5 Rights We Reserve. We (and our affiliates) retain the right, in our Business Judgment, to:
- (a) sell or otherwise distribute any products or services anywhere, whether at wholesale, retail or otherwise and whether or not using the Marks or System, without restriction of any kind and in any channel of distribution, other than mobile facilities providing pet grooming services under the Marks and System, whether or not located in your Territory and to customers located anywhere;
- (b) Distribute branded products through any outlet (including sales through general retail stores, pet stores or otherwise and/or by electronic means) located anywhere;
- (c) Own and operate HydroDog Businesses ourselves or authorize others to own and/or operate (i) any business located outside of your Territory, whether or not using the Marks and/or System, (ii) any business anywhere, whether using the Marks and/or System or no, which is not substantially similar to your HydroDog Business and/or (iii) any business anywhere which does not use the Marks;
- (d) acquire, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not), with units located anywhere, including arrangements in which we are acquired, and/or company-owned, franchised or other businesses (including your HydroDog Business) are converted to another format, maintained under the System or otherwise. Your HydroDog Business will fully participate in any such conversion subject to any person/entity merging with, or acquiring us, reimbursing you for reasonable costs directly related to such conversion.
- (e) Engage in any action or exercise any other rights reserved to us described in the Franchise Agreement and engage in any action and exercise any rights not granted exclusive to you under the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains specific rights regarding the operation of businesses, including those not using Hydrodog Marks. Hydrodog has the right to own and operate HydroDog Businesses themselves or authorize others to do so. This includes businesses located outside a franchisee's territory, regardless of whether they use Hydrodog Marks or the Hydrodog system. It also includes businesses anywhere that do not use the Hydrodog Marks, or businesses that are not substantially similar to the franchisee's HydroDog Business, regardless of location.
This reservation of rights allows Hydrodog to explore different business models or markets without being restricted by existing franchise agreements. For a potential franchisee, this means that Hydrodog could operate or authorize businesses that compete with their franchise, as long as those businesses don't use the Hydrodog Marks or are not substantially similar to the franchisee's HydroDog Business. This could impact a franchisee's market share and revenue potential.
Hydrodog also retains the right to sell or distribute any products or services anywhere, whether at wholesale, retail, or otherwise, and whether or not using the Marks or System. They can do so without restriction of any kind and in any channel of distribution, other than mobile facilities providing pet grooming services under the Marks and System, whether or not located in your Territory and to customers located anywhere. Hydrodog can also distribute branded products through any outlet (including sales through general retail stores, pet stores or otherwise and/or by electronic means) located anywhere.
Furthermore, Hydrodog can engage in transactions with other businesses, even competitors, and convert existing franchised businesses to another format. While franchisees will participate in any such conversion, they will be reimbursed for reasonable costs directly related to the conversion. These rights provide Hydrodog with considerable flexibility in managing and expanding its brand, but franchisees need to be aware of the potential for competition from Hydrodog or other channels.