What happens if the character of a Hydrodog franchisee's territory changes detrimentally?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Relocation of the Territory. You may not operate your HydroDog Business from any location on a fixed or mobile basis other than through your mobile operations of the HydroDog Vehicle without our prior written consent. If, in our Business Judgment, there is a change in character of your Territory sufficiently detrimental to its business potential to warrant your HydroDog Business's relocation to a new geographic area comprising a new or modified Territory, we reserve the right to permit you to relocate your HydroDog Business to operate within a new or modified Territory, subject to your compliance with all of our System Standards. We reserve the right to deny any such relocation at our sole discretion. Any relocation will be at your sole expense. If you obtain our approval, you must reopen your HydroDog Business within the new or modified Territory as soon as practicable, but in no event more than thirty (30) days after our approval is given. Except as stated herein, you are not permitted to relocate your HydroDog Business or operate, promote or market outside your Territory.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, if Hydrodog determines that there is a change in the character of a franchisee's territory that is sufficiently detrimental to its business potential, Hydrodog reserves the right to permit the franchisee to relocate their Hydrodog business to a new or modified territory. However, the franchisee must comply with all of Hydrodog's System Standards. Hydrodog also reserves the right to deny any such relocation at its sole discretion.
Any relocation of the Hydrodog business will be at the franchisee's sole expense. If the relocation is approved, the franchisee must reopen their Hydrodog business within the new or modified territory as soon as possible, but no more than 30 days after Hydrodog's approval is given.
This policy means that a Hydrodog franchisee may be required to move their business if the original territory becomes unfavorable. The franchisee bears the full financial burden of this relocation, and Hydrodog retains the right to refuse relocation. This clause highlights the importance of carefully evaluating the territory and potential risks before investing in a Hydrodog franchise.