What expenses can be charged to the Hydrodog business's account when managed by a Hydrodog-appointed manager after death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
t your expense. Pending the appointment of a Manager as provided above or if, in our judgment, your HydroDog Business is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a Manager for your HydroDog Business. All funds from the operation of your HydroDog Business during the management by our appointed Manager will be kept in a separate account, and all expenses of your HydroDog Business, including compensation, other costs and travel and living expenses of our Manager, will be charged to this account. We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Fund Fees and contributions payable under this Agreement) during the period that our appointed Manager manages your HydroDog Business, which will not exceed four hundred dollars ($400) per day plus our reasonable expenses. Operation of your HydroDog Business during any such period will be on your behalf, provided that we shall use commerc
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, if the franchisee dies or becomes disabled and does not have a trained manager in place, Hydrodog has the right to appoint a manager to operate the business. During this period of management by a Hydrodog-appointed manager, all funds from the Hydrodog business's operation will be kept in a separate account.
Expenses that can be charged to this account include all expenses of the Hydrodog business, such as the compensation, other costs, and travel and living expenses of the Hydrodog-appointed manager. Additionally, Hydrodog has the right to charge a reasonable management fee, which will not exceed $400 per day, plus reasonable expenses, in addition to the standard royalty and marketing fund fees.
It is important to note that while Hydrodog will use commercially reasonable efforts in operating the business, they will not be liable to the franchisee, their owners, or any third party for any debts, losses, or obligations incurred by the Hydrodog business during the period it is managed by their appointed manager. This also extends to any creditors for products, materials, supplies, or services purchased during this period. This arrangement ensures the continuity of the Hydrodog business while the franchisee's affairs are being settled, but it also places the financial risk of the business operations during this period on the franchisee's estate or the franchisee themselves.