Can Hydrodog acquire or merge with other businesses, competitive or not, with units located anywhere?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains the right to acquire, merge, or engage in transactions with other businesses, regardless of whether they are competitive or not, and with units located anywhere. This includes arrangements where Hydrodog itself is acquired, and company-owned, franchised, or other businesses are converted to another format, maintained under the Hydrodog system, or otherwise.

For a prospective Hydrodog franchisee, this means that Hydrodog has broad discretion to expand its business through acquisitions and mergers without necessarily providing any direct benefit or protection to individual franchisees. While the franchise agreement stipulates that the Hydrodog business awarded to the franchisee will fully participate in any conversion, it is subject to the acquiring entity reimbursing the franchisee for reasonable costs directly related to the conversion.

This clause highlights the potential for significant changes in the Hydrodog system due to external business transactions. Franchisees should be aware that Hydrodog's strategic decisions regarding acquisitions and mergers could impact their business, and while there is a provision for reimbursement of conversion costs, the overall impact on their operations and profitability could vary. It is important for potential franchisees to seek clarification on how such transactions might affect their specific franchise and what protections are in place to safeguard their interests.