Does the Hydrodog General Manager need to have an ownership interest in the franchisee entity?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
sell, dispense, give away or otherwise offer or provide Products and Services except by means of retail sales from the HydroDog Vehicle. You agree to maintain an inventory of Products and Services sufficient to meet the daily demands of your HydroDog Business and as designated in our System Standards.
- 11.13 Management. If you are an entity, you are required to complete and update, as necessary, the statement of ownership attached hereto as Attachment B throughout the term of this Agreement, and to provide us with a copy of any such updates within thirty (30) days of making them. Your HydroDog Business shall be managed by you, or if you are an entity, by one of your shareholders, partners, or members who is a natural person, holding at least a ten percent (10%) interest in the franchisee entity, and who is designated in writing to us as the person to make all decisions for the franchisee entity and to be principally responsible for communicating with us about your HydroDog Business ("Designated Owner"). Under certain circumstances we may allow you to appoint a designated manager ("General Manager") to run the day-to-day operations of your Franchised Business; the General Manager need not have an ownership interest in the franchisee entity.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a General Manager is not required to have an ownership stake in the franchisee entity. If the franchisee is an entity, a Designated Owner, who must hold at least a 10% interest in the franchisee entity, is required. This Designated Owner is responsible for making all decisions for the franchisee entity and communicating with Hydrodog.
Hydrodog may allow the appointment of a General Manager to oversee the day-to-day operations of the franchised business. Unlike the Designated Owner, the General Manager is not required to have any ownership interest in the franchisee entity.
However, any General Manager, regardless of ownership, must sign Hydrodog's current "Confidentiality and Non-Solicitation and Non-Competition Agreement" as a condition of their employment or appointment. This ensures that confidential information is protected and that the General Manager is bound by non-solicitation and non-competition terms.