In the Hydrodog agreement, what is the effect of acts of war or insurrection on the performance of obligations?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) you and your owners agree to comply, and to assist us to the fullest extent possible in our efforts to comply, with Anti-Terrorism Laws (defined below). In connection with that compliance, you and your owners certify, represent, and warrant that none of your property or interests is subject to being blocked under, and that you and your owners otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you or your owners, or any blocking of your or your owners' assets under the Anti-Terrorism Laws, constitutes good cause for immediate termination of this Agreement; and
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, any violation of Anti-Terrorism Laws by the franchisee or their owners, or any blocking of their assets under these laws, constitutes grounds for immediate termination of the Franchise Agreement. The agreement defines "Anti-Terrorism Laws" as Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war.
This means that if a Hydrodog franchisee or any owner is found to be in violation of any anti-terrorism laws or if their assets are blocked under such laws, Hydrodog has the right to immediately terminate the franchise agreement. This clause emphasizes Hydrodog's commitment to complying with anti-terrorism regulations and ensuring that its franchisees also adhere to these laws.
For a prospective Hydrodog franchisee, this highlights the importance of ensuring full compliance with all anti-terrorism laws. It also means that the franchisee must ensure that none of their assets or the assets of their owners are subject to being blocked under these laws. Failure to comply can lead to immediate termination of the franchise agreement, resulting in the loss of the franchise and any investments made into the business.