Are there any exceptions to the definition of 'Competitive Business' for Hydrodog franchisees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The words "Competitive Business" refers to any business or facility that owns, operates, manages, grants, sells, offers or supports franchises or licenses to others to do so, any mobile, fixed, or internet or catalog based business or facility that provides pet grooming, pet care, pet products or services, or any other pet-related products and services that are identical, similar to, competitive with, or substitutable for the Products and Services offered by HydroDog Businesses, whether now existing or hereafter developed, excluding any HydroDog Business under a franchise agreement with us, or any other business that we, at our sole discretion, determine to be competitive.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a 'Competitive Business' is broadly defined as any business involved in pet grooming, care, products, or services that are similar to what Hydrodog offers. However, there are specific exceptions to this definition for Hydrodog franchisees.
Specifically, the definition of 'Competitive Business' excludes any Hydrodog Business operating under a franchise agreement with Hydrodog. This means that franchisees are permitted to own and operate multiple Hydrodog franchises without violating the competitive business restrictions. Additionally, Hydrodog retains the discretion to determine that certain businesses are not competitive, providing some flexibility in interpreting the restrictions.
However, franchisees are restricted from having a direct or indirect interest in a Competitive Business, or performing services for one, within the territory, within 25 miles of the territory, or within 25 miles of any other Hydrodog Business. The agreement also specifies that passive investments in businesses that do not directly compete with Hydrodog are permissible, unless the franchisee holds a position as a director, officer, or majority stockholder in the competing business.