Is the Hydrodog business valued as part of the Hydrodog network when determining the purchase price?

According to the 2025 Hydrodog Franchise Disclosure Document, when Hydrodog exercises its right to purchase a franchise, the business will be valued as an independent entity. The valuation specifically excludes any value derived from the franchise itself, the associated trademarks or copyrights, and participation within the Hydrodog network.

Instead, the purchase price will be based on the fair market value of the business, considering factors such as the reasonable depreciation of equipment, signs, inventory, materials, and supplies. This valuation approach ensures that the franchisee is compensated for the tangible assets and operational components of their specific Hydrodog location, rather than the intangible benefits associated with the overall franchise system.

This valuation method has significant implications for a prospective Hydrodog franchisee. It means that the resale value of their franchise is primarily tied to the physical assets and operational efficiency of their individual business. The franchisee will not directly benefit from the brand recognition or network effects of the larger Hydrodog system when the business is purchased by Hydrodog. Therefore, franchisees should focus on maintaining and managing their assets effectively to maximize their potential return upon sale to Hydrodog.