What happens if a Hydrodog franchisee makes an unauthorized assignment of the Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Other Agreement | Summary |
|---|---|---|
| (h) "Cause" defined - non curable defaults | Section 16.2 | Non-curable defaults include, but are not limited to, material misrepresentation or omission; failure to complete training; failure to open your HydroDog Business within 90 days |
| 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. |
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, an unauthorized assignment of the Franchise Agreement by a franchisee constitutes a non-curable default. This means that Hydrodog can terminate the franchise agreement if a franchisee transfers the agreement without approval.
This is a significant issue for prospective franchisees. Unlike some curable defaults, an unauthorized transfer gives Hydrodog immediate grounds for termination. The FDD states that non-curable defaults also include material misrepresentation, failure to complete training, and failure to open the HydroDog Business within 90 days.
It is important for a potential Hydrodog franchisee to understand the conditions under which Hydrodog will approve a transfer, which are listed in the table. These conditions include the new franchisee qualifying, payment of all outstanding amounts to Hydrodog, the transferee completing training, and signing Hydrodog's current franchise agreement and other required documents.