factual

Does a failure to mitigate a loss reduce the amounts Hydrodog may recover from the Hydrodog franchisee?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

Under no circumstances will we or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee's failure to mitigate a loss will not reduce the amount Hydrodog may recover from them. Specifically, Hydrodog states that under no circumstances will they or any other indemnified party be required to seek recovery from any insurer or other third party, or otherwise mitigate their losses and expenses, in order to maintain and fully recover a claim against the franchisee.

This means that Hydrodog is not obligated to minimize its losses before seeking compensation from the franchisee. The franchisee cannot argue that Hydrodog should have taken steps to reduce the damages and therefore is entitled to pay less. This provision is designed to protect Hydrodog's right to full recovery without the burden of pursuing other avenues of compensation first.

This clause places the full financial responsibility on the Hydrodog franchisee, even if there are other potential sources of recovery. Franchisees should be aware of this clause and understand that they could be liable for the full amount of damages, regardless of whether Hydrodog could have reduced those damages through other means. Franchisees should consult with a legal professional to fully understand the implications of this indemnification clause.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.