What happens if a Hydrodog franchisee loses the HydroDog Vehicle?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Other Agreement | Summary |
|---|---|---|
| of the Agreement Date; abandonment; unapproved transfers; conviction of or a plea of no contest to, a felony or other serious crime; dishonest or unethical conduct; unauthorized assignment of the Franchise Agreement or of an ownership interest in you or the HydroDog Business; loss of the HydroDog Vehicle; unauthorized use or disclosure of the Manuals or confidential information; failure to pay taxes, repeated defaults (even if cured); and bankruptcy. All non-curable defaults are subject to applicable state law. | ||
| (o) Franchisor's option to purchase franchisee's business | Section 17.5 | Upon 60 days' notice to you, we have the option to buy the Business, including the HydroDog Vehicle, at fair market value after our termination, or your termination without cause, of the agreement (but not expiration). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the loss of the HydroDog Vehicle can lead to termination of the Franchise Agreement. Specifically, the FDD lists "loss of the HydroDog Vehicle" as a non-curable default that can result in the termination of the agreement.
This means that if a Hydrodog franchisee loses access to their vehicle, whether through theft, damage, or any other reason, Hydrodog has grounds to terminate the franchise agreement. This is a significant risk for franchisees, as the HydroDog Vehicle is essential for operating the business. Franchisees should ensure they have adequate insurance coverage to protect against potential loss or damage to the vehicle.
Furthermore, in the event of termination, Hydrodog also has the option to purchase the business, including the HydroDog Vehicle, at fair market value. This option is available to Hydrodog after termination of the agreement. Therefore, it is crucial for prospective franchisees to understand the implications of losing the HydroDog Vehicle and to take necessary precautions to safeguard this critical asset.