What constitutes a breach of the Hydrodog franchise agreement regarding transfer after death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.5 Transfer Upon Death or Disability.
Upon your death or disability or, if you are a Business Entity, the death or disability of the owner of a controlling interest in you, your or such owner's executor, administrator, conservator, guardian or other personal representative must transfer your interest in this Agreement or such owner's interest in you to a third party.
Such disposition of this Agreement or the interest in you (including, without limitation, transfer by bequest or inheritance) must be completed within a reasonable time, not to exceed 6 months from the date of death or disability, provided that we may extend this period for up to an additional 6 months upon written request showing good cause for such extension, and will be subject to all of the terms and conditions applicable to transfers contained in this Section.
A failure to transfer your interest in this Agreement or the ownership interest in you within this period of time constitutes a breach of this Agreement.
For purposes of this Agreement, the term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you or an owner of a controlling interest in you from managing and operating your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a breach of the franchise agreement occurs if the franchisee or, in the case of a business entity, the owner of a controlling interest, dies or becomes disabled, and their interest in the agreement or the business is not transferred to a third party within a specified timeframe. The standard timeframe for this transfer is six months from the date of death or disability.
However, Hydrodog may grant an extension of up to an additional six months if a written request is submitted demonstrating good cause. If the transfer is not completed within the initial six-month period, or the extended period if granted, it is considered a breach of the franchise agreement.
For the purposes of the agreement, "disability" is defined as a mental or physical condition that prevents the franchisee or the owner of a controlling interest from effectively managing and operating the Hydrodog business. Therefore, it is crucial for prospective franchisees to understand the implications of death or disability on the continuation of the franchise and to have a plan in place for transferring ownership within the stipulated time frame to avoid breaching the agreement.