According to the Hydrodog franchise agreement, what is the duration of the renewal term?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Other Agreement | Summary |
|---|---|---|
| (a) | Section 2.2 | 10 years |
| Length of the Franchise | ||
| Term | ||
| (b) | Section 3.1 | If you are in good standing, you can acquire a |
| Renewal or extension | successor franchise for an additional 10-year | |
| of the term | term on our then current terms and conditions. | |
| (c) Requirements for franchisee to renew or extend | Sections 3.1, 3.3, & 3.4 | The term "renewal" refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. You must give us written notice of your election to acquire a successor franchise; maintain possession of the HydroDog Vehicle, or secure a substitute, and being it into compliance with our then-current standards and specification; sign our then-current franchise agreement, which may be materially different except that the Royalties and Marketing Fund Fees will be the same as the prior franchise agreement; pay our then-current fees except an initial franchise fee; sign a general release; and satisfactorily complete any new training and refresher programs we require. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee in good standing has the option to acquire a successor franchise for an additional term of 10 years. This renewal is based on Hydrodog's then-current terms and conditions.
To renew the franchise agreement, the franchisee must provide written notice to Hydrodog expressing their intent to acquire a successor franchise. They must also maintain possession of the HydroDog Vehicle, ensuring it meets the current standards and specifications, or secure a suitable substitute. Furthermore, franchisees are required to sign the then-current franchise agreement, which may differ materially from the original agreement, although the Royalties and Marketing Fund Fees will remain consistent with the prior agreement. Franchisees must also pay the then-current fees, excluding the initial franchise fee, sign a general release, and successfully complete any new training or refresher programs that Hydrodog requires.
It is important to note that the new franchise agreement signed at the time of renewal may contain terms that are materially different from the original agreement. However, the royalty and marketing fund fees will remain the same. This means that while some operational aspects or requirements might change, the core financial obligations related to royalties and marketing contributions will stay consistent. Prospective franchisees should carefully review the then-current franchise agreement at the time of renewal to understand any changes and their implications.