Where are the funds from the operation of the Hydrodog business kept when managed by a Hydrodog-appointed manager after death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
t your expense. Pending the appointment of a Manager as provided above or if, in our judgment, your HydroDog Business is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a Manager for your HydroDog Business. All funds from the operation of your HydroDog Business during the management by our appointed Manager will be kept in a separate account, and all expenses of your HydroDog Business, including compensation, other costs and travel and living expenses of our Manager, will be charged to this account. We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Fund Fees and contributions payable under this Agreement) during the period that our appointed Manager manages your HydroDog Business, which will not exceed four hundred dollars ($400) per day plus our reasonable expenses. Operation of your HydroDog Business during any such period will be on your behalf, provided that we shall use commerc
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if the franchised business is being managed by a Hydrodog-appointed manager due to the franchisee's death or disability, all funds generated from the operation of the Hydrodog business will be kept in a separate account. This account will be used to cover all expenses related to the business, including the compensation, costs, travel, and living expenses of the Hydrodog-appointed manager.
Hydrodog also has the right to charge a reasonable management fee, in addition to the standard royalty and marketing fund fees, for the period their appointed manager is running the business. This management fee will not exceed $400 per day, plus reasonable expenses incurred by the manager.
The FDD clarifies that the Hydrodog business will be operated on behalf of the franchisee during this period. While Hydrodog commits to using commercially reasonable efforts in operating the business, they will not be liable for any debts, losses, or obligations incurred by the Hydrodog business, nor will they be responsible to any of the franchisee's creditors for products, materials, supplies, or services purchased during the management period.