Can Hydrodog seek other damages or injunctive relief if a franchisee violates the Competitive Restriction?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Therefore, in the event that you violate any of the Competitive Restriction set forth in this Agreement, within 15 calendar days of such violation, you will pay us partial liquidated damages in the amount of our then-current initial franchise fee ("Competitive Liquidated Damages").
You agree that Competitive Liquidated Damages as calculated under this Section represent the best estimate the Franchisor would suffer for its costs and expenses of investigation and its internal non-legal costs to prepare to enforce its rights if you were to violate the Competitive Restriction set forth in this Agreement.
Your payment of the Competitive Liquidated Damages will not be considered a penalty, but instead a reasonable estimate of fair compensation to the Franchisor for some of, but not all of, the damages, costs and expenses it will incur if you violate the Competitive Restriction.
The Franchisor is also be entitled to recover all costs, including attorneys' fees incurred in connection with collection of Liquidated Damages as well as enforcing its rights.
Without limiting the foregoing, the Competitive Liquidated Damages will not be the Franchisor's exclusive remedy, will not prevent us from seeking other actual or consequential damages, injunctive relief enjoining future violations of the Competitive Restriction, nor will it in any way limit the Franchisor' right to assert that we have no adequate remedy at law in the event of breach.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains the right to pursue additional remedies beyond liquidated damages for violations of the competitive restriction.
Specifically, while a franchisee who violates the competitive restriction must pay liquidated damages equal to Hydrodog's then-current initial franchise fee within 15 calendar days of the violation, this payment is not the sole recourse for Hydrodog. The liquidated damages are considered a fair estimate of Hydrodog's costs for investigation and internal non-legal expenses related to enforcing its rights.
Hydrodog explicitly states that it is not prevented from seeking other actual or consequential damages, and can pursue injunctive relief to stop future violations of the competitive restriction. Hydrodog also retains the right to assert that it has no adequate remedy at law if a franchisee breaches the competitive restriction.
This means that even if a Hydrodog franchisee pays the Competitive Liquidated Damages, Hydrodog can still sue for additional financial losses or seek a court order to prevent the franchisee from continuing to violate the competitive restriction. This clause strengthens Hydrodog's ability to protect its business interests and enforce the competitive restrictions outlined in the franchise agreement.