What are Hydrodog franchisees required to do regarding trade accounts?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.9 Trade Accounts and Taxes. You agree to maintain your trade accounts in a current status and seek to resolve any disputes with trade suppliers promptly, and to keep us informed of any significant disputes that may affect your HydroDog Business. You agree to timely pay all taxes incurred in connection with your HydroDog Business's operations. If you fail to maintain your trade accounts in a current status, timely pay such taxes or any other amounts owing to any third parties or perform any nonmonetary obligations to third parties, we may, but are not required to, pay any and all such amounts and perform such obligations on your behalf, and you shall indemnify us for any such payments or actions taken. If we elect to do so, then you agree to reimburse us for such amounts. You agree to repay us immediately upon receipt of our invoice. We may also set-off the amount of any such reimbursement obligations against all amounts which we may owe you.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must maintain their trade accounts in a current status and promptly resolve any disputes with trade suppliers. Franchisees are also required to keep Hydrodog informed of any significant disputes that may affect their HydroDog Business. Additionally, franchisees must pay all taxes incurred in connection with their HydroDog Business's operations in a timely manner.
If a Hydrodog franchisee fails to maintain their trade accounts, pay taxes, or fulfill obligations to third parties, Hydrodog has the option, but not the obligation, to step in and pay those amounts or perform those obligations on the franchisee's behalf. If Hydrodog chooses to do so, the franchisee must indemnify Hydrodog for any payments or actions taken and reimburse Hydrodog immediately upon receiving an invoice. Hydrodog also has the right to offset any reimbursement obligations against amounts it may owe the franchisee.
This requirement ensures that Hydrodog franchisees maintain good relationships with their suppliers and meet their financial obligations, which is crucial for the smooth operation of their businesses and the protection of Hydrodog's brand reputation. The ability for Hydrodog to step in and cover obligations, while not guaranteed, provides a safety net, though the franchisee remains responsible for reimbursement. The set-off provision gives Hydrodog a mechanism to recover these costs efficiently.