What constitutes 'good cause' for extending the transfer period of a Hydrodog franchise after death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, in the event of the death or disability of the franchisee or the owner of a controlling interest in a Hydrodog Business Entity, the executor, administrator, conservator, guardian, or other personal representative is required to transfer the interest in the Franchise Agreement or the ownership interest in the Hydrodog Business Entity to a third party. This transfer must occur within 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' for the extension. The FDD does not define what constitutes 'good cause.'
Prospective Hydrodog franchisees should note that failure to transfer the interest within the specified timeframe, including any approved extensions, constitutes a breach of the Franchise Agreement. It would be prudent for a prospective franchisee to seek clarification from Hydrodog regarding what specific circumstances would be considered 'good cause' for extending the transfer period, to better understand their obligations and potential risks.