Does the failure of any owner of a Hydrodog franchise to comply with the agreement trigger the same consequences as the franchisee's failure?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2 By Us. Subject to applicable state law and any required notice and cure periods mandated by state franchise laws, we have the right to terminate this Agreement, effective upon delivery of written notice of termination to you, if:
- (a) you (or any of your owners) have made any material misrepresentation or omission in connection with your purchase of the Franchise;
- (v) you (or any of your owners) fail to comply with any other provision of this Agreement or any System Standard and do not correct such failure within thirty (30) days after written notice of such failure to comply is delivered to you;
- (b) you and your owners agree to comply, and to assist us to the fullest extent possible in our efforts to comply, with Anti-Terrorism Laws (defined below). In connection with that compliance, you and your owners certify, represent, and warrant that none of your property or interests is subject to being blocked under, and that you and your owners otherwise are not in violation of, any of the Anti-Terrorism Laws. "Anti-Terrorism Laws" mean Executive Order 13224 issued by the President of the United States, the USA PATRIOT Act, and all other present and future federal, state, and local laws, ordinances, regulations, policies, lists, and other requirements of any governmental authority addressing or in any way relating to terrorist acts and acts of war. Any violation of the Anti-Terrorism Laws by you or your owners, or any blocking of your or your owners' assets under the Anti-Terrorism Laws, constitutes good cause for immediate termination of this Agreement; and
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the actions of the owners of a Hydrodog franchise can have the same consequences as the actions of the franchisee themselves. Specifically, the agreement can be terminated by Hydrodog if the franchisee or any of their owners make any material misrepresentation or omission in connection with the purchase of the franchise.
Additionally, Hydrodog can terminate the franchise agreement if the franchisee or any of their owners fail to comply with any provision of the agreement or any System Standard and do not correct such failure within thirty (30) days after written notice of such failure to comply is delivered. Hydrodog can also terminate the agreement if the franchisee or their owners violate Anti-Terrorism Laws or any blocking of their assets under Anti-Terrorism Laws.
These stipulations highlight the importance of all owners being fully aware of and compliant with the franchise agreement. A prospective Hydrodog franchisee should ensure that all owners understand their obligations and the potential ramifications of non-compliance, as the actions of one owner can jeopardize the entire franchise agreement.