Can Hydrodog designate an officer to have signature rights to the Operating Account?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to designate one of its officers or authorized representatives to have signature rights to the Operating Account. This account is established by the franchisee with a bank or financial institution that Hydrodog designates or approves and serves as the primary bank account for the Hydrodog business.

This provision grants Hydrodog significant control over the franchisee's finances, as Hydrodog's designated officer can conduct transactions related to the franchise agreement directly from the Operating Account. While the stated purpose is for transactions related to the franchise agreement, franchisees should seek clarity on what specific types of transactions Hydrodog might conduct and what limitations exist to prevent misuse of these signature rights.

It is important for a prospective Hydrodog franchisee to understand the implications of this control. While Hydrodog states this is solely for transactions related to the franchise agreement, the franchisee should seek further clarification and legal advice to fully understand their rights and obligations regarding the Operating Account and Hydrodog's access to it. This is not uncommon in franchising, but the scope and limitations should be clearly defined to protect the franchisee's interests.