Is a Hydrodog franchisee obligated to sell a customer account to another franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) Customer Account Transfer Fee | Amount(4) An amount agreed upon by the parties | Due Date As Agreement | Remarks If a customer account is identified by us as belonging to the territory of another franchisee, and you desire to provide services or products to such customer account, you may submit a written request to such other franchisee, with a copy of such written request provided to us, to purchase from the other franchisee the rights to provide services or products to the customer account. The other franchisee shall have no obligation to sell the customer account to you. In the event the other franchisee desires to sell the rights to the customer account to you, then the other franchisee shall respond to you in writing of such acceptance of your offer, and you shall pay such other franchisee a customer account transfer fee in an amount that shall be mutually agreed by both parties. |
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Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee is not obligated to sell a customer account to another franchisee. The FDD outlines a process where if Hydrodog identifies a customer account as belonging to another franchisee's territory, the franchisee desiring to serve that customer can request to purchase the rights to that account. However, the other franchisee has no obligation to sell. If the franchisee agrees to sell the rights to the customer account, both parties must agree to a customer account transfer fee.
This means that a Hydrodog franchisee has the right to refuse another franchisee's request to purchase a customer account within their territory. This protects the franchisee's customer base and revenue stream. It also allows the franchisee to maintain control over their territory and customer relationships.
For a prospective Hydrodog franchisee, this is an important consideration. It provides a level of security knowing that other franchisees cannot force them to give up valuable customer accounts. However, it also means that if a franchisee wants to expand their services into another territory, they cannot force the existing franchisee to sell them the rights to those customers. The sale of a customer account is subject to negotiation and mutual agreement between the franchisees involved.