According to the Hydrodog Franchise Agreement, what is included in the definition of 'transfer'?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
cordingly, neither this Agreement (or any interest in it) nor any ownership or other interest that would reduce your voting or equity interest to less than 51% in you or your HydroDog Business may be transferred without our prior written approval. Any transfer without such approval constitutes a breach of this Agreement and is void and of no effect. As used in this Agreement, the term "transfer" includes your (or your owners') voluntary,
involuntary, direct or indirect assignment, sale, gift or other disposition of any interest in: (a) this Agreement; (b) you; or (c) your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the term 'transfer' in the franchise agreement is broadly defined. It encompasses any voluntary, involuntary, direct, or indirect assignment, sale, gift, or other disposition of any interest in the franchise agreement itself, the franchisee (you), or the Hydrodog business.
This definition extends to specific events such as the transfer of ownership of capital stock or a partnership interest, a merger or consolidation, or the issuance of additional securities or interests representing an ownership interest in the franchisee. It also includes any issuance or sale of the franchisee's stock or any security convertible to their stock.
This comprehensive definition means that franchisees must seek approval from Hydrodog for a wide range of transactions that could affect the ownership or control of the franchise. Failure to obtain prior written approval for any transfer constitutes a breach of the Franchise Agreement and renders the transfer void.