Who benefits from the franchisee's obligations under the Hydrodog Franchise Agreement?
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.
- 21.20 No Liability to Others; No Other Beneficiaries. We will not, because of this Agreement or by virtue of any approvals, advice or services provided to you, be liable to any person or legal entity who is not a party to this Agreement. Except as specifically described in this Agreement, no other party has any rights because of this Agreement. The Franchisee acknowledges that other HydroDog franchisees may be granted franchises at different times, different locations, under different economic conditions and in different situations. The Franchisee further acknowledges that the economics and terms and conditions of such other franchises may vary from those contained in this Agreement, but all such variations will be within the discretion and Reasonable Business Judgment of the Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement is binding on and benefits Hydrodog, its successors, and assigns. While the agreement is also binding on the franchisee's successors, assigns, heirs, executors, and administrators, any assignment of the agreement by the franchisee requires Hydrodog's written approval. This means that Hydrodog retains control over who can take over a franchise.
Hydrodog is not liable to any party outside of the agreement for any advice or services provided to the franchisee. The franchisee acknowledges that other Hydrodog franchisees may have different franchise agreements with varying economic terms based on timing, location, and differing economic conditions. These variations are at the discretion of Hydrodog, based on their reasonable business judgment.
In essence, Hydrodog benefits directly from the franchisee's obligations under the franchise agreement. While other parties, such as successors and assigns of Hydrodog, may also benefit, the primary beneficiary is Hydrodog itself. The agreement is structured to protect Hydrodog's interests and provide it with flexibility in managing its franchise system.