Where in the Hydrodog FDD can I find banking tips and warnings?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
. Our election to impose non-compliance fees shall not waive or limit any other rights or remedies we may have under this Agreement, including but not limited to our right to later terminate this Agreement for the same or different breaches. If your non-compliance is monetary in nature, we reserve the right to notify your credit union or other banking institution that issued a loan or line of credit for your HydroDog Business of your failure to comply with this Agreement. You agree that such fee and banking notification is in addition to any other rights or remedies we may have under this Agreement or at law. We may, in our sole and absolute discretion, choose to grant you an opportunity to cure the non-compliance prior to imposing the Non-Compliance Fee or pursuing other remedies, but we have no obligation to do so and our choice to grant a cure opportunity in one instance does not require us to do so in any other instance. We shall have the right to require any form of verification to determine non-compliance, with or without cause, including but not limited to documentation, photos, video tours, etc. You shall be required to furnish such verification within seventy-two (72) hours of our request.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Item 23 discusses banking notifications related to non-compliance. Specifically, if a franchisee's non-compliance is monetary, Hydrodog reserves the right to notify the franchisee's credit union or other banking institution that issued a loan or line of credit for the Hydrodog Business of the franchisee's failure to comply with the agreement. This notification is in addition to any other rights or remedies Hydrodog may have under the agreement or at law.
Additionally, Item 5.7 discusses the Operating Account. Hydrodog may require franchisees to establish an operating account with a bank or other financial institution that Hydrodog designates or approves. This Operating Account serves as the primary bank account for the Hydrodog Business. Hydrodog has the right to make automated withdrawals from this account for agreed-upon fees and payments due to them. Furthermore, Hydrodog, in its sole judgment, can designate one of its officers or authorized representatives to have signature rights to the Operating Account, solely for conducting transactions related to the franchise agreement. Franchisees must use the Operating Account in accordance with Hydrodog's System Standards.
These clauses have significant implications for prospective franchisees. Hydrodog's ability to notify a franchisee's bank of non-compliance could impact the franchisee's credit and banking relationships. The requirement to establish an Operating Account and Hydrodog's right to make withdrawals and have signature rights provide Hydrodog with considerable control over the franchisee's finances. A prospective franchisee should carefully consider these factors and discuss them with Hydrodog before entering into a franchise agreement.