Who bears the expense of assigning the leasehold interest in the Hydrodog Vehicle to Hydrodog?

According to the 2025 Hydrodog Franchise Disclosure Document, the franchisee bears the expense of assigning the leasehold interest in the Hydrodog Vehicle to Hydrodog. Specifically, if Hydrodog elects to purchase the business, including the leasehold rights to the Hydrodog Vehicle, the franchisee is responsible for the costs associated with assigning the leasehold interest to Hydrodog.

This means that upon termination of the franchise agreement, either by Hydrodog or by the franchisee without cause, Hydrodog has the option to purchase the business. If Hydrodog exercises this option, the franchisee is obligated to assign the leasehold interest in the Hydrodog Vehicle to Hydrodog at the franchisee's own expense. This could include legal fees, administrative costs, or any other expenses directly related to the assignment of the lease.

This arrangement places a financial burden on the franchisee at the point of termination, as they must cover the costs of transferring the leasehold interest back to Hydrodog. Prospective franchisees should factor this potential expense into their financial planning, considering it as a possible cost associated with exiting the Hydrodog franchise system. It is important to fully understand all the conditions under which Hydrodog may exercise its right to purchase the business and the associated costs for the franchisee.