factual

Does the restriction on soliciting customers apply to a former Hydrodog franchisee after the franchise agreement terminates?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (b) on behalf of yourself or any other person, or in any capacity associated with any other person or entity, solicit, divert, take away, or interfere with any of the business, customers, vendors, suppliers, franchisees or contractors of ours or the Franchisor, our or its affiliates or any of its franchisees as may exist during the term of this Agreement or thereafter.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, a former franchisee is restricted from soliciting customers after the franchise agreement terminates. Specifically, for a period of two years after the termination or expiration of the agreement, the franchisee cannot solicit, divert, take away, or interfere with any of the business, customers, vendors, suppliers, franchisees, or contractors of Hydrodog or its affiliates.

This restriction applies regardless of the reason for termination, ensuring that former franchisees do not unfairly compete with existing Hydrodog businesses by leveraging knowledge or relationships gained during their time as a franchisee. The restriction aims to protect Hydrodog's customer base and business relationships.

This type of restriction is common in franchising to protect the brand and the network of franchisees. Prospective Hydrodog franchisees should understand the implications of this clause, particularly if they plan to remain in the pet grooming industry after leaving the Hydrodog system. It is important to note that this restriction lasts for two years and applies to interfering with the business of current franchisees as well as Hydrodog itself.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.