What are the Hydrodog franchisee's obligations regarding site selection (Item 9) and how does this relate to the franchisor's approval of the territory (Item 11)?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Franchise Agreement | Item in Disclosure Document |
|---|---|---|
| a. Site selection and acquisition/ lease | 2.1, 2.3, 4.1, 4.3 and 5.1 | Items 7, 11 and 12 |
Before you purchase your HydroDog Business, you and we shall jointly agree on a Territory in which you will operate your HydroDog Business. As you will be operating a mobile business, we expect that you will run your HydroDog Business from a home office, and we will not review or approve the location of your office. You will need to secure sufficient parking for your HydroDog Vehicles. We will not review or approve your parking accommodations. (Franchise Agreement, Section 4.1).
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees have obligations regarding site selection and acquisition/lease, as detailed in the Franchise Agreement's Sections 2.1, 2.3, 4.1, 4.3, and 5.1, and further referenced in Items 7, 11, and 12 of the disclosure document. Item 11 specifies how the franchisor is involved in the territory selection.
Before a franchisee purchases a HydroDog Business, both the franchisee and Hydrodog must jointly agree on a Territory in which the franchisee will operate. Given that HydroDog is a mobile business, franchisees are expected to operate from a home office. However, Hydrodog will not review or approve the location of this home office. The franchisee is responsible for securing sufficient parking for the HydroDog Vehicles, but Hydrodog will also not review or approve these parking accommodations.
In summary, while Hydrodog requires joint agreement on the overall territory, the franchisee is responsible for selecting and managing the specific location of their home office and vehicle parking without franchisor oversight. This differs from traditional brick-and-mortar franchises where site selection is typically a collaborative process with franchisor approval. This hands-off approach to the franchisee's base of operations reflects the mobile nature of the Hydrodog business model.