Is Hydrodog restricted from owning and/or operating any business anywhere which does not use the Hydrodog Marks?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
irst refusal or similar rights to acquire additional franchises.
Rights We Retain
Under the Franchise Agreement we (and our affiliates) retain the right in our sole discretion to:
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- 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, in any alternative or other channel of distribution other than mobile facilities providing pet grooming services under the Marks and System, whether or not located
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains significant rights regarding business operations. Specifically, Hydrodog has the right to own and/or operate any business anywhere, regardless of whether it uses Hydrodog's marks. This includes businesses not substantially similar to the franchised business and those that do not use the Hydrodog marks at all.
This provision in the Franchise Agreement means that Hydrodog is not restricted from operating other businesses, even if they compete with the franchisee's Hydrodog business or are entirely unrelated. This could include businesses operating outside the franchisee's territory or businesses that offer different products or services.
For a prospective franchisee, this lack of restriction on Hydrodog's business activities represents a potential risk. Hydrodog could, in theory, operate a competing business that draws customers away from the franchisee's location. While the FDD does not elaborate on the likelihood of Hydrodog doing so, it is a factor that potential franchisees should consider and discuss with Hydrodog during their due diligence. It is common for franchise agreements to allow the franchisor some latitude to pursue other business ventures, but the extent of these rights can vary significantly and should be carefully evaluated.