How is 'disability' defined in the Hydrodog franchise agreement regarding transfer upon death or disability?

According to the 2025 Hydrodog Franchise Disclosure Document, the franchise agreement addresses the definition of 'disability' in the context of transferring the franchise upon the disability of the franchisee or the owner of a controlling interest in the franchisee if the franchisee is a business entity.

The agreement defines "disability" as a mental or physical disability, impairment, or condition that is reasonably expected to prevent, or actually does prevent, the franchisee or the owner of a controlling interest in the franchisee from managing and operating the Hydrodog business. This definition is important because it triggers certain requirements, such as the need to transfer the franchise within a specified timeframe.

Specifically, upon the disability of the franchisee or controlling owner, their representative must transfer the interest in the franchise agreement or the ownership interest in the business entity to a third party within six months, although Hydrodog may grant an extension of up to six additional months. Failure to transfer the interest within this timeframe constitutes a breach of the franchise agreement. This definition ensures clarity and sets expectations for both the franchisee and Hydrodog in the event of a disability.