Can Hydrodog change the fees in the renewed franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
sfer. We shall not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees.
3. SUCCESSOR TERMS.
- 3.1 Renewal. Subject to the provisions of this Section, you shall have an option (exercisable only by written notice delivered to us by certified mail or overnight courier with proof of delivery, less than nine (9) months, but more than six (6) months, prior to the end of the initial term of this Agreement) to renew the franchise hereunder for up to one (1) additional period of ten (10) years, if the following conditions are met and provided that we, in our reasonable business judgment, agree to the renewal:
- (a) you have been, throughout the initial term of this Agreement, in substantial compliance, and at the expiration of such initial term are current in all payments and in full compliance and not in default of this Agreement, the lease and all other agreements between you and us or companies associated or affiliated with us;
- (b) you enter into our then-current franchise agreement (which may contain materially different terms, including, without limitation, higher fees, different territory rights, and modified operational requirements) and all other ancillary agreements, instruments and documents then customarily used by us in the granting of franchises (which then-current franchise agreement may materially differ from this Agreement, including a higher rate of fees, different methods of calculating fees due, and different payment methods, which shall be the same as those set out in the franchise agreements being executed at the time of renewal);
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the company can modify the franchise agreement's terms upon renewal, including fee structures. To renew the franchise for an additional ten years, a franchisee must enter into Hydrodog's then-current franchise agreement. This agreement may include materially different terms such as higher fees, different territory rights, and modified operational requirements.
Specifically, the renewed agreement may feature a higher rate of fees, different methods for calculating fees, and different payment methods. These terms will align with those in franchise agreements being executed at the time of renewal. This means that Hydrodog franchisees may face increased costs or altered payment schedules upon renewal, reflecting the prevailing terms for new franchisees.
However, if certain laws legally obligate Hydrodog to renew the franchise despite their choice not to, the renewal term will be subject to the conditions of the franchise agreement Hydrodog is using for new franchisees at the time the renewal period begins, to the extent allowed by law. If Hydrodog is not offering new franchises at that time, the renewal period will be subject to the terms in the franchise agreement that Hydrodog indicates. If neither scenario is allowed, the renewal term will be governed by the terms of the original agreement.