What is the effect of Hydrodog's consent to a transfer of the Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
he business but shall have no liability to you, your owners, or any third party for any debts, losses, or obligations incurred by your HydroDog Business or to any of your creditors for any products, materials, supplies or services your HydroDog Business purchases during any period it is managed by our appointed Manager.
- 15.7 Effect of Consent to Transfer. Our consent to a transfer of this Agreement and your HydroDog Business or any interest in you does not constitute a representation as to the fairness of the
terms of any contract between you and the transferee, a guarantee of the prospects of success of your HydroDog Business or transferee,
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog's consent to a transfer of the franchise agreement and the Hydrodog business does not constitute a representation regarding the fairness of the terms between the franchisee and the transferee. It also does not guarantee the success prospects of the Hydrodog business or the transferee. Furthermore, Hydrodog's consent does not waive any claims Hydrodog may have against the franchisee or waive Hydrodog's right to demand exact compliance with the franchise agreement terms from the transferee. Unless expressly stated in writing by Hydrodog, the franchisee is not released from their obligations under the franchise agreement even with Hydrodog's consent to the transfer.
This means that even if a franchisee sells their Hydrodog business with Hydrodog's approval, Hydrodog is not liable if the new owner fails or if the terms of the sale are unfavorable. Hydrodog also retains all rights and claims against the original franchisee unless explicitly waived in writing.
For a prospective Hydrodog franchisee, this highlights the importance of carefully negotiating the terms of any transfer agreement and understanding that Hydrodog's approval of the transfer does not provide any guarantees or protection against potential losses or liabilities. It is crucial to seek legal and financial advice before proceeding with a transfer to fully understand the implications and protect their interests.