What fees must a Hydrodog franchisee pay to renew their franchise, and are there any exceptions?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Other Agreement | Summary |
|---|---|---|
| (a) | Section 2.2 | 10 years |
| Length of the Franchise | ||
| Term | ||
| (b) | Section 3.1 | If you are in good standing, you can acquire a |
| Renewal or extension | successor franchise for an additional 10-year | |
| of the term | term on our then current terms and conditions. | |
| (c) Requirements for franchisee to renew or extend | Sections 3.1, 3.3, & 3.4 | The term "renewal" refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. You must give us written notice of your election to acquire a successor franchise; maintain possession of the HydroDog Vehicle, or secure a substitute, and being it into compliance with our then-current standards and specification; sign our then-current franchise agreement, which may be materially different except that the Royalties and Marketing Fund Fees will be the same as the prior franchise agreement; pay our then-current fees except an initial franchise fee; sign a general release; and satisfactorily complete any new training and refresher programs we require. |
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, franchisees have the option to acquire a successor franchise for an additional 10-year term if they are in good standing with Hydrodog. To renew, a franchisee must provide written notice of their intent to acquire a successor franchise. They must also maintain possession of the HydroDog Vehicle, or secure a substitute, and bring it into compliance with Hydrodog's then-current standards and specifications.
Furthermore, the franchisee must sign Hydrodog's then-current franchise agreement, which may have terms and conditions that differ from the original agreement. However, the Royalties and Marketing Fund Fees will remain the same as in the prior franchise agreement. The franchisee is also required to pay Hydrodog's then-current fees, with the exception of the initial franchise fee, sign a general release, and satisfactorily complete any new training and refresher programs that Hydrodog requires at the time of renewal.
In summary, while the royalty and marketing fund fees remain consistent, franchisees should be prepared for potentially different terms and conditions in the renewed franchise agreement. They will also need to cover costs associated with vehicle compliance, training, and any then-current fees, excluding the initial franchise fee. This ensures that franchisees remain aligned with Hydrodog's standards and practices as the franchise evolves.