What is the scope of 'business' that a former Hydrodog franchisee is prohibited from soliciting?

According to Hydrodog's 2025 Franchise Disclosure Document, the term "Competitive Business" includes a broad range of activities. It encompasses any business or facility that owns, operates, manages, grants, sells, offers, or supports franchises or licenses for others to do the same. This extends to mobile, fixed, internet-based, or catalog-based businesses or facilities that provide pet grooming, pet care, pet products, or services.

The restriction applies to any pet-related products and services that are identical, similar to, or competitive with the products and services offered by Hydrodog businesses. This includes services and products that exist now or may be developed in the future. The only exceptions are existing Hydrodog businesses operating under a franchise agreement with Hydrodog, or any other business that Hydrodog, at its sole discretion, determines not to be competitive.

In practical terms, a former Hydrodog franchisee is significantly restricted from engaging in almost any aspect of the pet care industry within a certain geographic area after leaving the franchise. This includes not only direct competition through a similar mobile grooming service but also extends to related services like pet sitting, pet product sales, or even offering franchise opportunities for a competing pet care business.

This non-compete clause is designed to protect Hydrodog's market share and business model. Prospective franchisees should carefully consider the breadth of this restriction and how it might impact their future career options if they decide to exit the Hydrodog system. It is important to seek legal counsel to fully understand the implications of this clause before signing the franchise agreement.