Under what conditions can the competitive restrictions be waived for a Hydrodog franchisee by the Franchisor?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 imposed on franchisees can be waived, but only under specific conditions and with written permission from Hydrodog. During the time a franchisee is associated with Hydrodog, either as an employee or independent contractor, and for two years after the association ends, the franchisee is restricted from participating in any Competitive Business. A Competitive Business includes any business that offers similar pet-related products or services, or grants franchises or licenses to others to do so. These restrictions apply within the franchisee's territory, within 25 miles of the territory, and within 25 miles of any other Hydrodog business.
Hydrodog must provide written permission to waive these competitive restrictions. Without this written consent, franchisees are bound by the restrictions. This waiver would allow a franchisee to engage in a Competitive Business during their association with Hydrodog or within the two-year period following the termination of their agreement.
This condition is significant for prospective franchisees as it limits their ability to pursue other business ventures, particularly within the pet industry, during and for a period after their franchise agreement. Franchisees should carefully consider these restrictions and the circumstances under which Hydrodog might grant a waiver, as engaging in a competitive business without permission could result in legal action and financial penalties.