Does Hydrodog's consent to transfer the Hydrodog franchise constitute a representation as to the fairness of the transfer?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Our consent to a transfer of this Agreement and your HydroDog Business or any interest in you does not constitute a representation as to the fairness of the
terms of any contract between you and the transferee, a guarantee of the prospects of success of your HydroDog Business or transferee, a waiver of any claims we may have against you (or your owners), or a waiver of our right to demand the transferee's exact compliance with any of the terms or conditions of this Agreement. Furthermore, our consent to a transfer does not release you from your obligations under this Agreement unless expressly stated in writing by us.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog's consent to a franchise transfer does not constitute a representation regarding the fairness of the terms between the franchisee and the transferee. It also does not guarantee the success of the Hydrodog business or the transferee. Furthermore, Hydrodog's consent doesn't waive any claims Hydrodog may have against the franchisee or their owners, nor does it waive Hydrodog's right to demand exact compliance with the franchise agreement from the transferee.
This means that if a franchisee decides to sell their Hydrodog business to a third party, Hydrodog's approval of the transfer is simply an acknowledgement that the new franchisee meets Hydrodog's standards and requirements. It does not mean that Hydrodog is endorsing the financial terms of the sale or guaranteeing that the new franchisee will be successful. The prospective franchisee should not assume that Hydrodog's approval of a transfer implies anything about the value or viability of the business being transferred.
Moreover, the original franchisee remains responsible for their obligations under the franchise agreement unless Hydrodog expressly releases them in writing. Therefore, a franchisee looking to sell their Hydrodog business should seek legal and financial advice to ensure they understand the terms of the transfer agreement and their ongoing responsibilities to Hydrodog.