Is Hydrodog's Franchisor considered a direct beneficiary of the Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.18 Binding Effect. This Agreement is binding on and will inure to the benefit of our successors and assigns. Except as otherwise provided in this Agreement, this Agreement will also be binding on your successors and assigns, and your heirs, executors and administrators. However, any assignment of this Agreement by you must be approved by us in writing.
- 21.20 No Liability to Others; No Other Beneficiaries. We will not, because of this Agreement or by virtue of any approvals, advice or services provided to you, be liable to any person or legal entity who is not a party to this Agreement. Except as specifically described in this Agreement, no other party has any rights because of this Agreement. The Franchisee acknowledges that other HydroDog franchisees may be granted franchises at different times, different locations, under different economic conditions and in different situations. The Franchisee further acknowledges that the economics and terms and conditions of such other franchises may vary from those contained in this Agreement, but all such variations will be within the discretion and Reasonable Business Judgment of the Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Franchise Agreement specifies that the franchisor, Legacy Franchisors, LLC, is a direct beneficiary. Section 21.18 clarifies that the agreement is binding on and benefits the franchisor's successors and assigns.
This means that Legacy Franchisors, LLC, as the franchisor, has specific rights and protections under the agreement. This ensures that Hydrodog can enforce the terms of the agreement against the franchisee and that the franchisor's interests are legally protected.
Furthermore, Section 21.20 states that the franchisor will not be liable to any person or legal entity who is not a party to the agreement because of the agreement or any advice or services provided to the franchisee. It also clarifies that except as specifically described in the agreement, no other party has any rights because of the agreement. This reinforces that the agreement primarily benefits the franchisee and franchisor, and it limits the liability of Hydrodog to outside parties.