Does the Hydrodog franchise agreement create a fiduciary relationship between the franchisor and franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
18. RELATIONSHIP OF THE PARTIES/INDEMNIFICATION.
- 18.1 Independent Contractors. You and we understand and agree that this Agreement does not create a fiduciary relationship between you and us, that we and you are and will be independent contractors and that nothing in this Agreement is intended to make either you or us a general or special agent, joint venturer, partner or employee of the other for any purpose. You agree to conspicuously identify yourself in all dealings with customers, suppliers, public officials, Business personnel and others as the owner of your HydroDog Business under a Franchise we have granted and to place such notices of independent ownership on such forms, business cards, stationery and advertising and other materials as we may require from time-to-time. If you do not do so, we may place the notices and accomplish the foregoing as we see fit, and you must reimburse us for doing so.
- 18.2 No Liability for Acts of Other Party. You agree not to employ any of the Marks in signing any contract or applying for any license or permit, or in a manner that may result in our liability
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement explicitly states that it does not create a fiduciary relationship between the franchisor and the franchisee. The agreement specifies that both parties are independent contractors. This means that neither Hydrodog nor the franchisee acts as an agent, joint venturer, partner, or employee of the other.
This distinction is important because it clarifies the legal and financial responsibilities of each party. As independent contractors, franchisees are responsible for managing their own business operations and are liable for their own debts and obligations. Hydrodog is not liable for any indebtedness or obligations incurred by the franchisee. The franchisee must also identify themselves as the owner of their HydroDog business and include notices of independent ownership on business materials.
This arrangement is typical in franchising, where the franchisor provides the brand, system, and support, while the franchisee operates the business independently. The Hydrodog franchise agreement emphasizes this independence by stating that neither party can make agreements, warranties, or incur debt on behalf of the other without express written authorization. This protects both Hydrodog and the franchisee from potential liabilities arising from the other party's actions.