Is the Hydrodog agreement binding on the franchisor's successors and assigns?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.18 Binding Effect. This Agreement is binding on and will inure to the benefit of our successors and assigns. Except as otherwise provided in this Agreement, this Agreement will also be binding on your successors and assigns, and your heirs, executors and administrators. However, any assignment of this Agreement by you must be approved by us in writing.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, the franchise agreement is binding on Hydrodog's successors and assigns. This means that if Hydrodog is acquired by another company or transfers its rights to another entity, the terms of the franchise agreement will remain in effect for the franchisee.
However, the agreement also states that any assignment of the agreement by the franchisee requires written approval from Hydrodog. This provision allows Hydrodog to maintain control over who becomes a franchisee and ensures that any new franchisee meets their standards. Without this approval, any attempt to transfer the agreement by the franchisee is not valid.
This clause protects both Hydrodog and the franchisee in the event of a change in ownership or control of either party. It ensures continuity and stability in the franchise relationship, as the core terms of the agreement remain in place. For a prospective franchisee, this provides assurance that the agreement will be honored even if Hydrodog undergoes changes in its corporate structure.