What is the starting date for the two-year competitive restriction for Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
rent shaped shell around the shell.
- 17.3 Confidential Information. You agree that, upon termination or expiration of this Agreement, you will immediately cease to use any of our Confidential Information in any business or otherwise and return to us all copies of the Manuals and any other confidential materials that we have loaned to you.
- 17.4 Competitive Restrictions. Subject to applicable law, upon termination or expiration of this Agreement for any reason whatsoever (and you have not acquired a Successor Franchise), you and your owners agree that for a period of two (2) years commencing on the effective date of termination or expiration neither you nor any of your owners will 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:
- (a) within the Territory;
- (b) within twenty-five (25) miles of the Territory;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the two-year competitive restriction begins on the effective date of the termination or expiration of the franchise agreement. However, if a person refuses to comply with the competitive restrictions, the two-year period will commence with the entry of an order of an arbitrator, or court if necessary, enforcing this provision. This means that if a franchisee breaches the agreement, the start of the non-compete period could be delayed until a legal order is in place to enforce it.
This restriction applies to the franchisee and their owners, preventing them from having a direct or indirect interest in any Competitive Business. A Competitive Business is defined as one that offers pet grooming, pet care, pet products, or services similar to those offered by Hydrodog, within the franchisee's territory, within 25 miles of the territory, or within 25 miles of any other Hydrodog Business's territory.
It is important for prospective franchisees to understand these restrictions, as they could significantly limit their business opportunities after leaving the Hydrodog system. Franchisees should seek legal counsel to fully understand the implications of these competitive restrictions and how they might affect their future plans.