What happens if a Hydrodog franchisee fails to obtain or maintain required permits or licenses?

According to Hydrodog's 2025 Franchise Disclosure Document, failing to obtain and maintain the necessary permits or licenses from federal, state, or local authorities constitutes a breach of the franchise agreement.

Specifically, if a Hydrodog franchisee fails to secure and maintain the required permits and licenses, it can lead to the termination of the franchise agreement. The franchisee is responsible for securing all financing, permits, and licenses needed to develop and operate the Hydrodog business. This includes vehicle, utility, sign, health, sanitation, and business permits.

Furthermore, Hydrodog requires franchisees to operate their businesses in full compliance with all applicable laws, ordinances, and regulations. This encompasses government regulations related to occupational hazards, health, construction warranties, worker's compensation, immigration, unemployment insurance, construction permitting, workplace safety, and the withholding and payment of federal and state income taxes, social security taxes, and sales taxes. Failure to comply with these requirements puts the franchisee at risk of violating the franchise agreement.