Is a Hydrodog franchisee obligated to sell or transfer a customer account to another franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event, 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 or transfer the customer account to you, and we shall have no obligation to facilitate or require any such sale or transfer.
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 ("Customer Account Transfer Fee") in an amount that shall be mutually agreed by both parties.
The Customer Account Transfer Fee shall be due and payable from you to the other franchisee prior to the transfer of the customer account.
If the parties cannot agree on a Customer Account Transfer Fee within thirty (30) days of the initial written request, we shall have the right, but not the obligation, to determine a reasonable Customer Account Transfer Fee that shall be binding on both parties.
Any transfer of customer accounts must be documented in writing and a copy provided to us within 7 days of the transfer.
We shall not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee is not obligated to sell or transfer a customer account to another franchisee. However, the FDD outlines a process by which a franchisee can request to purchase customer accounts from another franchisee.
Specifically, if a Hydrodog franchisee identifies a customer account as belonging to another franchisee's territory and wishes to provide services to that customer, they may submit a written request to the other franchisee, with a copy to Hydrodog. The other franchisee is under no obligation to sell or transfer the account. Hydrodog is also not obligated to facilitate or require such a sale or transfer.
If the other franchisee agrees to sell the rights to the customer account, they must respond in writing, and the purchasing franchisee will pay a "Customer Account Transfer Fee." The amount of this fee is to be mutually agreed upon by both parties and paid before the transfer. If the franchisees cannot agree on a fee within 30 days of the initial request, Hydrodog has the right, but not the obligation, to determine a reasonable fee that will be binding on both parties. Any transfer of customer accounts must be documented in writing, with a copy provided to Hydrodog within 7 days of the transfer. Hydrodog assumes no liability for disputes between franchisees regarding these transfers or fees.