Does the governing law for Hydrodog include successor laws or regulations?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Renewal Under Law.
Even though we may choose not to renew your franchise, certain laws, rules, regulations, statutes, ordinances, or legal orders that are applicable in your jurisdiction at the time may legally obligate us to do so.
If that happens, to the extent it is allowed by the concerned law, rule, regulation, statute, ordinance or order, your renewal term will be subject to the conditions of the franchise agreement we are using for new franchisees at the time the renewal period begins.
If we are not then offering new franchises, your renewal period will be subject to the terms in the franchise agreement that we indicate.
If for any reason that is not allowed, the renewal term will be governed by the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement addresses the potential impact of successor laws or regulations on the renewal of a franchise. Specifically, even if Hydrodog chooses not to renew a franchise agreement, certain laws in the franchisee's jurisdiction at the time may legally obligate Hydrodog to do so.
If such laws, rules, or regulations apply, the renewal term will be subject to the conditions of Hydrodog's then-current franchise agreement for new franchisees, to the extent allowed by law. This means that the terms of the renewal could be significantly different from the original agreement. If Hydrodog is not offering new franchises at that time, the renewal terms will be based on the franchise agreement that Hydrodog indicates. However, if neither of these options is legally permissible, the renewal term will be governed by the terms of the original agreement.
This clause protects the franchisee by acknowledging that local laws may override Hydrodog's decision not to renew. However, it also carries the risk that the renewal terms could be less favorable, potentially including higher fees or different operational requirements, if the new franchise agreement is used. Prospective franchisees should be aware of the laws in their specific jurisdiction regarding franchise renewals and discuss these potential scenarios with Hydrodog before signing the franchise agreement.