Must any assignment of the Hydrodog agreement by the franchisee be approved by the franchisor in writing?
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 Hydrodog's 2025 Franchise Disclosure Document, any assignment of the Franchise Agreement by the franchisee requires written approval from Hydrodog. Specifically, while the agreement is generally binding on the franchisee's successors and assigns, this is explicitly qualified.
This requirement gives Hydrodog control over who enters into an agreement with them and ensures that the new franchisee meets their standards. This is a fairly standard clause in franchise agreements, as franchisors typically want to maintain consistent brand standards and operational quality by carefully vetting potential franchisees.
However, the 2025 FDD also notes an amendment regarding Item 17 row (m) of the disclosure document and Section 15.3 of the Franchise Agreement. This amendment removes the requirement that Hydrodog has the right to approve the material terms as a condition to transfer. This suggests a slight relaxation of control, focusing more on the suitability of the transferee rather than the specific terms of the transfer agreement itself. Prospective franchisees should carefully review Section 15 of the agreement to understand the full scope of transfer conditions and Hydrodog's approval rights.