In the context of the Hydrodog franchise agreement, does the definition of 'owner' include someone with an indirect ownership interest?

According to Hydrodog's 2025 Franchise Disclosure Document, the definition of "owner" explicitly includes individuals or entities with direct or indirect ownership interests. This encompasses not only those with legal ownership but also those with beneficial ownership or voting rights in another person or entity associated with the franchise agreement. This broad definition extends to anyone with a direct or indirect interest in the franchisee or the agreement itself, as well as those who possess any legal or equitable interest in the revenue, profits, rights, or assets.

For a prospective Hydrodog franchisee, this means that the franchisor's oversight extends beyond the primary franchisee to include anyone who holds a financial stake or influence in the franchise operation, whether directly or indirectly. This could include silent partners, investors, or other entities that have a financial interest in the franchise. Hydrodog aims to ensure that all parties involved are aligned with the brand's standards and obligations.

The implications of this definition are significant, as Hydrodog retains the right to scrutinize and potentially approve or disapprove of individuals or entities with indirect ownership interests. This is to maintain control over who benefits from and influences the franchise. Prospective franchisees need to be transparent about all ownership interests and understand that these individuals or entities may be subject to the franchisor's review and approval. This requirement is not uncommon in franchising, as franchisors seek to protect their brand and ensure consistent operations across all franchise locations.

Furthermore, Hydrodog may require individuals with ownership interests to execute an agreement to be bound jointly and severally by the obligations of the franchise agreement. This ensures that all parties with a financial stake are legally responsible for upholding the terms of the agreement, providing an additional layer of protection for the franchisor. Franchisees should carefully consider the implications of this broad definition and the potential impact on their business structure and relationships with investors or partners.