What conditions must a Hydrodog franchisee meet to get franchisor approval for a transfer?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Other Agreement | Summary |
|---|---|---|
| of the Agreement Date; abandonment; unapproved transfers; conviction of or a plea of no contest to, a felony or other serious crime; dishonest or unethical conduct; unauthorized assignment of the Franchise Agreement or of an ownership interest in you or the HydroDog Business; loss of the HydroDog Vehicle; unauthorized use or disclosure of the Manuals or confidential information; failure to pay taxes, repeated defaults (even if cured); and bankruptcy. All non-curable defaults are subject to applicable state law. | ||
| (i) Franchisee's obligations on termination/ non renewal | Sections 17.1 - 17.4 | Obligations include payment of outstanding amounts, complete de-identification and return of confidential information (also see (r) below). |
| (j) Assignment of contract by franchisor | Sections 15.1, 15.4, 15.5 and 15.6 | No restriction on our right to assign. |
| (k) | Section 15.2 | Voluntary or involuntary, direct or indirect |
| "Transfer" by | assignment, sale, gift or other disposition of any | |
| franchisee - | interest in the Franchise Agreement, you or the | |
| defined | HydroDog Business. | |
| (l) Franchisor's approval of transfer by franchisee | Section 15.2 | We have the right to approve all transfers, even to a Business Entity controlled by you. |
| (m) Conditions for franchisor approval of transfer | Section 15.3 | New franchisee qualifies, you pay us all amounts due, transferee and its managerial employees agree to complete training, transferee agrees to be bound by terms and conditions of Franchise Agreement, our then current form of Franchise Agreement is signed and the then-current initial franchise fee is paid, we approve material terms, you subordinate amounts due to you, and you sign other documents we require - including general releases in the form provided in Exhibit "E" (also see r below). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchisor has the right to approve all transfers, even to a business entity controlled by the franchisee.
To gain Hydrodog's approval for a transfer, several conditions must be met. First, the new franchisee must meet Hydrodog's qualifications. Second, the current franchisee must pay all outstanding amounts owed to Hydrodog. Third, the transferee and its managerial employees must complete the required training program. Fourth, the transferee must agree to be bound by the terms and conditions of the existing Franchise Agreement or sign Hydrodog's then-current form of Franchise Agreement.
Additionally, the transferee must pay the then-current initial franchise fee, and Hydrodog must approve the material terms of the transfer. The franchisee must subordinate any amounts due to them and sign any other documents Hydrodog requires, including general releases in the form provided in Exhibit "E".
These conditions are typical in franchising, as franchisors want to ensure that any new franchisee is well-qualified and that all financial obligations are settled before a transfer occurs. The requirement for the transferee to sign the current franchise agreement is also standard, allowing the franchisor to update the terms and conditions as needed. Prospective franchisees should carefully review Exhibit E to understand the scope of the general releases required for transfer approval.