When a Hydrodog franchisee renews or transfers their franchise agreement, what parties are released from claims?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| In consideration of the agreement of Legacy Franchisors, LLC ("Franchisor") to allow ("Franchisee") to [RENEW OR TRANSFER] its Franchise Agreement dated between Franchisee and Franchisor ("Agreement"), Franchisee hereby releases and forever discharges Franchisor, and its affiliates, as well as their members, directors, officers, employees and agents, in their corporate and individual capacities, and their respective heirs, personal representatives, successors and assigns, from any and all claims Franchisee may have against such parties known and unknown, foreseen and unforeseen, from all beginning of time to the date hereof, whether in law or in equity, including, but not limited to, any claims arising out of the offer or sale of any franchise to Franchisee, and any matters arising under the Agreement or under any other agreement between Franchisee and Franchisor or its affiliates. [FOR TRANSFERS: Further, Franchisee acknowledges that transfer of the Agreement shall terminate Franchisee's interest in the Agreement, but Franchisee will continue to be bound by all post-termination provisions of the Agreement, including but not limited to the obligations of confidentiality, and the covenant not to compete contained in the Agreement.] | |------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, both franchise renewal and transfer require the franchisee to release certain parties from potential claims. Specifically, when a Hydrodog franchisee renews their agreement, they must execute a general release in favor of Hydrodog, its affiliates, and their respective officers, directors, and shareholders, thereby releasing all claims against these parties. This is a condition for renewal.
Similarly, when a Hydrodog franchisee transfers their franchise, both the franchisee and their transferring owners must execute a general release. This release covers any and all claims against Hydrodog and its shareholders, officers, directors, employees, and agents. The release must be in a form satisfactory to Hydrodog. However, if the transfer is among the franchisee's owners, the franchisee is not required to sign a general release, although the transferee must reimburse Hydrodog for any administrative costs incurred during the transfer.
In both scenarios, the release serves to protect Hydrodog from potential legal actions by the franchisee related to the franchise agreement. This is a fairly standard practice in franchising, as it provides the franchisor with legal protection when a franchisee exits or renews their agreement. Prospective franchisees should carefully consider the implications of these releases and consult with legal counsel before signing any franchise agreements or related documents.