Will my Hydrodog Business be required to fully participate in any conversion resulting from Hydrodog merging with or being acquired by another entity?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains the right to engage in transactions with other businesses, including arrangements where Hydrodog is acquired, and franchised businesses are converted to another format. As a Hydrodog franchisee, you are required to fully participate in any such conversion. However, the entity merging with or acquiring Hydrodog is responsible for reimbursing you for reasonable costs directly related to the conversion.

This means that if Hydrodog is acquired or merges with another company, your Hydrodog business may be required to change its format or system of operation to align with the new entity. While you must participate in this conversion, you are entitled to reimbursement for the reasonable costs you incur as a direct result of the conversion.

This clause protects franchisees from bearing the full financial burden of a conversion initiated by a merger or acquisition. However, the FDD does not define 'reasonable costs,' so it is important to clarify with Hydrodog what specific expenses would be covered in such a scenario. It is also important to note that Hydrodog has the right to alter the terms of your territorial rights if you default under the Franchise Agreement.