Does the restriction on soliciting Hydrodog's franchisees apply to franchisees that exist after the agreement terminates?
Hydrodog Franchise · 2025 FDDAnswer 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, the non-solicitation clause extends beyond the termination of the franchise agreement. Specifically, the agreement states that franchisees are prohibited from soliciting Hydrodog's franchisees that exist during the term of the agreement or thereafter. This means that even after a franchise agreement ends, the former franchisee cannot solicit or interfere with any of Hydrodog's existing franchisees.
This restriction is in place to protect Hydrodog's relationships with its franchisees and to prevent former franchisees from unfairly competing by leveraging connections made during their time with the company. The non-solicitation clause aims to maintain the stability and integrity of the Hydrodog franchise network.
For a prospective Hydrodog franchisee, this clause highlights the importance of understanding the long-term implications of the franchise agreement. Even after leaving the Hydrodog system, the franchisee remains bound by certain obligations, including the restriction on soliciting other franchisees. This could impact future business ventures and should be carefully considered before entering into the franchise agreement.