In the Hydrodog franchise agreement rider, what document does this rider amend?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The Summary column of Item 17 rows (f) and (g) of this disclosure document and Section 16.2 of the Franchise Agreement are amended to add that the Franchisor's ability to terminate the Franchise Agreement and/or any related agreement is subject to state law.
The Summary column of Item 17 row (m) of this disclosure document and Section 15.3 of the Franchise Agreement are amended to remove the requirement that the Franchisor have the right to approve the material terms as a condition to transfer.
The Summary column of Item 17 row (p) of this disclosure document and Sections 15.5 and 15.6 of the Franchise Agreement are amended to provide franchisee with 6 months (or 180 days) to transfer the business in the event of death or disability. Further, the Franchisor shall agree to deal in good faith pursuant to RCW 19.100.180(1).
The Summary column of Item 17 row (u) of this disclosure document is amended to read as follows:
"Franchise or an ownership interest in you must be assigned to an approved buyer within 3 months and must be run by a trained manager during the period prior to the assignment. You will have 6 months to transfer the HydroDog Business. Assignment is subject to our right of first refusal."
The first sentence of Section 18.4 of the Franchise Agreement shall be amended in part to provide that the franchisee shall not be required to indemnify the franchisor or its affiliates for the negligent acts or omissions of the franchisor or its affiliates.
Section 21 of the Franchise Agreement will be subject to the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, the franchise agreement rider amends the Franchise Agreement itself. Specifically, Item 23 outlines several amendments to specific sections of the Franchise Agreement. These amendments cover various aspects of the agreement, including termination rights, transfer conditions, indemnification, and compliance with the Washington Franchise Investment Protection Act.
For a prospective Hydrodog franchisee, this means that the initial Franchise Agreement is not necessarily the final word. Riders can modify the original terms, potentially altering the franchisee's rights and obligations. It is crucial to carefully review any riders or addenda to understand the complete scope of the agreement.
Notably, several amendments relate to legal compliance, particularly with Washington state law. This highlights the importance of franchisees understanding the legal landscape in their operating area and how it interacts with the franchise agreement. The rider also addresses specific scenarios like the death or disability of the franchisee, outlining procedures for transferring the business. This provides some clarity and protection for the franchisee and their family in unforeseen circumstances.
Furthermore, the rider includes modifications to the franchisor's rights, such as removing the requirement for the franchisor to approve all material terms of a transfer. This could potentially offer franchisees more flexibility in selling their business. However, it's essential to note that assignment is still subject to the franchisor's right of first refusal, meaning Hydrodog retains the option to purchase the franchise before it's sold to a third party.