What restrictions are placed on transferring Hydrodog owners regarding competition after the transfer?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
(k) subject to state law, you and your transferring owners have executed a noncompetition covenant in favor of us and the transferee, agreeing to be bound by the post-term competitive restrictions contained in this Agreement, commencing on the effective date of the transfer; and
(l) you and your transferring owners have agreed that, except with respect to other HydroDog Businesses you own and operate, you and they will not directly or indirectly at any time or in any manner identify yourself or themselves or any business as a current or former HydroDog Business, or as one of our licensees or franchisees, use any Mark, any colorable imitation of a Mark, or other indicia of a HydroDog Business in any manner that suggests or indicates a current or past connection or association with us, or utilize for any purpose any trade name, trade or service mark or other commercial symbol that suggests or indicates a current or past connection or association with us.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if you transfer your franchise, you and your transferring owners must sign a noncompetition agreement. This agreement states that you will adhere to the post-term competitive restrictions outlined in the franchise agreement, starting from the effective date of the transfer. This means that after transferring your Hydrodog franchise, you cannot immediately engage in a competing business.
Specifically, the non-compete agreement prevents you and your transferring owners from identifying yourselves or any business as a current or former Hydrodog business. You are prohibited from using any Hydrodog trademarks, imitations of those trademarks, or any other elements that suggest a connection to Hydrodog. This restriction applies at all times and in any manner, except for other Hydrodog businesses that you might own and operate.
This measure protects Hydrodog and the new franchisee by preventing the previous owner from leveraging their experience and knowledge to unfairly compete in the same market immediately after the transfer. The restrictions ensure that the goodwill and brand recognition of Hydrodog remain with the franchise system and benefit the new owner. Prospective franchisees should carefully review the specific terms of the post-term competitive restrictions in the franchise agreement to fully understand the scope and duration of these limitations.