Can Hydrodog waive the competitive restrictions in writing for a former franchisee?
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:
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog can permit a former franchisee to be released from the competitive restrictions in writing. Specifically, during the time a person is associated with Hydrodog, as an employee or independent contractor, and for a period of two years following the termination of such association, the non-compete terms apply. However, this restriction does not apply if Hydrodog and the Franchisor otherwise permit it in writing and except on their behalf.
This means that after a Hydrodog franchise agreement ends, the franchisee is generally restricted from engaging in competitive business activities for a period of two years. These restrictions typically include not having a direct or indirect interest in any business that owns, operates, manages, or grants franchises or licenses to others, or in any competitive business operating within the franchisee's territory, within 25 miles of the territory, or within 25 miles of any other Hydrodog business.
However, Hydrodog retains the discretion to waive these competitive restrictions in writing. If Hydrodog provides written permission, a former franchisee would be allowed to engage in activities that would otherwise be prohibited by the non-compete agreement. This waiver must be explicit and in writing to be effective.
For a prospective franchisee, this clause offers a degree of flexibility. While the standard agreement includes a non-compete clause, there is a possibility of negotiating a waiver under certain circumstances, providing an opportunity to pursue other business ventures sooner than the standard two-year period if Hydrodog agrees.