In the event of the Hydrodog franchisee's death or disability, how long does the franchisee have to assign the franchise to an approved buyer?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in | Summary |
|---|---|---|
| Franchise or Other Agreement | ||
| (p) Death or disability of franchisee | Sections 15.5 and 15.6 | Franchise or an ownership interest in you must be assigned to an approved buyer within 3 months and must be run by a trained manager during the period prior to the assignment. Assignment is subject to our right of first refusal. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, in the event of the death or disability of a franchisee, the franchise or ownership interest must be assigned to an approved buyer within 3 months. During the period leading up to the assignment, a trained manager must run the franchise. Hydrodog also retains the right of first refusal on the assignment, meaning they have the option to purchase the franchise themselves before it is offered to another buyer.
This provision ensures business continuity and protects Hydrodog's brand standards even if the franchisee is no longer able to operate the business. The requirement for a trained manager during the transition period helps maintain operational quality.
For a prospective franchisee, this means that in the unfortunate event of death or disability, their family or estate has a limited time to find a qualified buyer for the franchise. If a buyer cannot be found within 3 months, Hydrodog may exercise its right of first refusal, potentially at a price determined by them.
It is important for prospective franchisees to consider this when planning their estate and business succession. Adequate insurance and a well-defined business plan can help mitigate risks associated with unforeseen circumstances.