exception

Under what conditions can the competitive restrictions be waived for a Hydrodog franchisee?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Competitive Restrictions. During the time that you are associated with us, as an employee or independent contractor and for a period of two (2) years following the termination of such association, unless we and the Franchisor otherwise permit in writing and except on our behalf, you will not:
    • (a) 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 business or facility owning, operating, managing, or granting franchises or licenses to others to do so, or 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 or its Territory in operation or under construction on the later of the effective date of the termination or expiration of your employment or the date on which you comply with such restrictions (see Section 5 below).

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, the competitive restrictions can be waived under specific conditions, primarily related to an employee or independent contractor's association with Hydrodog. During the time that someone is associated with Hydrodog, as an employee or independent contractor, and for a period of two years following the termination of such association, they are subject to competitive restrictions. However, these restrictions can be waived if Hydrodog and the Franchisor provide written permission allowing the individual to engage in activities that would otherwise be prohibited.

Specifically, without written permission from Hydrodog, an employee or contractor cannot have any direct or indirect interest in a business or facility that owns, operates, manages, or grants franchises or licenses to others, or in any Competitive Business operating within the Territory, within twenty-five miles of the Territory, or within twenty-five miles of any other HydroDog Business or its Territory in operation or under construction. These restrictions apply both during the association with Hydrodog and for two years after termination.

This waiver provision offers Hydrodog some flexibility in managing competitive concerns, as they can choose to allow certain individuals to engage in competitive activities under specific circumstances. However, it also means that franchisees and their employees are generally bound by strict non-compete terms unless Hydrodog explicitly waives those restrictions in writing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.