What specific actions are prohibited regarding soliciting or interfering with Hydrodog's business relationships?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
, including injunctive relief, specific performance, and recovery of monetary damages. Any claim, defense, or cause of action that you or your Owners may have against us, regardless of cause or origin, cannot be used as a defense against our enforcement of this Article 9.
9.3 Client Database. You agree that the list of the names, addresses and other information regarding your current clients, former clients, and those who have inquired about the Services (the "Client
Database") is included in the Confidential Information, is our property, and constitutes a trade secret of ours. You agree that you may not disclose, sell, assign, transfer or convey the Client Database, or any portion thereof, to any person other than us either during the term of this Agreement or thereafter, and you acknowledge that the Client Database constitutes our sole and exclusive property. You further agree that a breach of this Section shall be grounds for immediate termination of this Agreement pursuant to Section 14.1.12.
10. EXCLUSIVE RELATIONSHIP.
You and your Owners acknowledge and agree that we would be unable to protect Confidential Information against unauthorized use or disclosure or to encourage a free exchange of ideas and information among the HydroDog Businesses if franchised owners of the HydroDog Businesses were permitted to hold interests in or perform services for a Competitive Business. You also acknowledge that we have granted the franchise to you in consideration of and reliance upon your agreement to deal exclusively with us. You agree that, during the term of this Agreement, and subject to applicable state law, neither you, any of your owners, nor any immediate family members of you or your owners (including spouses or children) will:
- (a) have any direct or indirect interest as a disclosed or beneficial owner in a Competitive Business, other than your HydroDog Business;
- (b) have any direct or indirect controlling interest as a disclosed or beneficial owner in a Competitive Business, wherever located;
- (c) have any direct or indirect interest (e.g. through a spouse or child) as a disclosed or beneficial owner, investor, partner, director, officer, employee, consultant, member, Manager, representative or agent or in any other capacity in any Competitive Business operating (i) within the Territory; (ii) within twenty-five (25) miles of the Territory; or (iii) within twenty-five (25) miles of any other HydroDog Business's Territory in operation or under development on the later of (a) the effective date of the termination or expiration of this Agreement or (b) the date on which you cease to have any direct or indirect interest in a Competitive Business;
- (d) perform services as a director, officer, Manager, employee, consultant, representative, agent or otherwise for a Competitive Business, wherever located; or
- (e) on behalf of yourself or any other person, or as an employee, proprietor, owner, consultant, agent, contractor, employer, affiliate, partner, officer, director or associate, or stockholder of any other person or entity, or in any other capacity, engage in or conduct any other business if you have any significant operational or management responsibility or obligation regarding such business, if such other business would interfere with your obligations under this Agreement to develop and operate your HydroDog business or otherwise (other than the HydroDog Businesses operated under franchise agreements with us), unless your HydroDog business is managed by a Chief Operating Officer, or equivalent position, approved by us, who has satisfactorily completed our training programs. This provision does not prohibit passive investments in other businesses that do not compete directly or indirectly with HydroDog business. However, an interest in a business in which your capacity is either a director, officer or majority stockholder (or any combination thereof) does not constitute a passive investment, and will be considered a breach of these provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees face several restrictions aimed at protecting Hydrodog's confidential information and business relationships. Franchisees agree that the client database, which includes names, addresses, and other information about current, former, and prospective clients, is Hydrodog's property and a trade secret. Franchisees are prohibited from disclosing, selling, assigning, transferring, or conveying this client database to anyone other than Hydrodog, both during and after the franchise agreement. A breach of this restriction can lead to immediate termination of the agreement.
During the term of the agreement, franchisees, their owners, and their immediate family members are restricted from holding interests in or performing services for a Competitive Business. A "Competitive Business" includes any business that offers pet grooming, pet care, or pet-related products and services that are similar to those offered by Hydrodog, excluding other Hydrodog franchises. This restriction is in place to protect Hydrodog's confidential information and encourage a free exchange of ideas within the Hydrodog system.
Franchisees must also adhere to standards regarding social media use, including prohibitions on posting comments about their Hydrodog business or the Hydrodog system, except on websites authorized by Hydrodog. Hydrodog retains the exclusive right to manage collective or national campaigns through local social media accounts and to respond to any reviews of Hydrodog businesses posted on platforms like Yelp or TripAdvisor. Franchisees are also prohibited from selling products and services wholesale or through channels other than their Hydrodog business, such as catalog sales or the internet.