When is the Customer Account Transfer Fee due and payable for Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.7 Customer Account Transfer Fee.
In the event, a customer account is identified by us as belonging to the territory of another franchisee, and you desire to provide services or products to such customer account, you may submit a written request to such other franchisee, with a copy of such written request provided to us, to purchase from the other franchisee the rights to provide services or products to the customer account.
The other franchisee shall have no obligation to sell or transfer the customer account to you, and we shall have no obligation to facilitate or require any such sale or transfer.
In the event the other franchisee desires to sell the rights to the customer account to you, then the other franchisee shall respond to you in writing of such acceptance of your offer, and you shall pay such other franchisee a customer account transfer fee ("Customer Account Transfer Fee") in an amount that shall be mutually agreed by both parties.
The Customer Account Transfer Fee shall be due and payable from you to the other franchisee prior to the transfer of the customer account.
If the parties cannot agree on a Customer Account Transfer Fee within thirty (30) days of the initial written request, we shall have the right, but not the obligation, to determine a reasonable Customer Account Transfer Fee that shall be binding on both parties.
Any transfer of customer accounts must be documented in writing and a copy provided to us within 7 days of the transfer.
We shall not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Customer Account Transfer Fee is due and payable from the franchisee desiring to acquire customer accounts to the other franchisee prior to the transfer of the customer account. The fee amount is determined by mutual agreement between both franchisees.
If the franchisees cannot agree on the Customer Account Transfer Fee within 30 days of the initial written request to transfer the account, Hydrodog has the right, but not the obligation, to determine a reasonable Customer Account Transfer Fee that will be binding on both parties. Any transfer of customer accounts must be documented in writing, and a copy must be provided to Hydrodog within 7 days of the transfer.
This means that if a Hydrodog franchisee wants to take over a customer account from another franchisee's territory, they must negotiate a price. The payment is made before the customer account is officially transferred. If the franchisees can't agree on a price within 30 days, Hydrodog can step in to set a price that both franchisees must accept. This process ensures that customer accounts can be transferred smoothly, with Hydrodog having the final say if franchisees can't come to an agreement.