Does Hydrodog consider routine litigation incidental to the business as a 'pending action' requiring disclosure in Item 23?

Based on the 2025 Hydrodog Franchise Disclosure Document, franchisees are required to notify Hydrodog if any action, suit, or proceeding is commenced against them or their Hydrodog Business. This requirement is part of the franchisee's obligation to adhere to good business practices and maintain honesty, integrity, and ethical conduct in their dealings with customers, suppliers, and the franchisor.

This notification requirement ensures that Hydrodog is informed of any legal issues that could potentially affect the brand's reputation or the operation of the franchise system. It allows Hydrodog to take appropriate action to protect its interests and provide support to the franchisee if necessary. The FDD does not explicitly define what constitutes a 'routine litigation' or whether such actions are exempt from this notification requirement.

Therefore, a prospective Hydrodog franchisee should seek clarification from the franchisor regarding the types of legal actions that must be disclosed, specifically whether routine or minor litigation incidental to the business operations falls under this notification requirement. Understanding this will help the franchisee comply with the terms of the franchise agreement and maintain a transparent relationship with Hydrodog.