Who determines the amount of the Customer Account Transfer Fee 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.
3. SUCCESSOR TERMS.
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 determined through a negotiation process. If a Hydrodog franchisee wants to acquire customer accounts from another franchisee's territory, they must first submit a written request to the other franchisee, with a copy sent to Hydrodog. The other franchisee is not obligated to sell or transfer the customer account.
If the franchisee is willing to sell the rights to the customer account, they will respond in writing to the requesting franchisee. The two franchisees must then mutually agree on a Customer Account Transfer Fee. This fee is paid by the purchasing franchisee to the selling franchisee before the customer account is transferred.
However, if the two franchisees cannot agree on a Customer Account Transfer Fee within thirty days of the initial written request, Hydrodog has the right, but not the obligation, to step in and determine a reasonable Customer Account Transfer Fee. This determination by Hydrodog would then be binding on both franchisees. Hydrodog is not liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees. Any transfer of customer accounts must be documented in writing and a copy provided to Hydrodog within 7 days of the transfer.