What happens if a Hydrodog franchisee operates as a Business Entity?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.13 Management. If you are an entity, you are required to complete and update, as necessary, the statement of ownership attached hereto as Attachment B throughout the term of this Agreement, and to provide us with a copy of any such updates within thirty (30) days of making them. Your HydroDog Business shall be managed by you, or if you are an entity, by one of your shareholders, partners, or members who is a natural person, holding at least a ten percent (10%) interest in the franchisee entity, and who is designated in writing to us as the person to make all decisions for the franchisee entity and to be principally responsible for communicating with us about your HydroDog Business ("Designated Owner"). Under certain circumstances we may allow you to appoint a designated manager ("General Manager") to run the day-to-day operations of your Franchised Business; the General Manager need not have an ownership interest in the franchisee entity. In addition, if you are an entity, all persons who own twenty percent (20%) or more of the beneficial ownership interests in the entity and each such person's respective spouse shall personally and unconditionally guaranty franchise owner's performance under this Agreement by signing the Owners Agreement attached hereto as Attachment D. The Designated Owner shall have the authority to speak for and bind the franchise owner in all matters pertaining to this Agreement, and all matters relating to your HydroDog Business.
You must at all times faithfully, honestly, and diligently perform your contractual obligations. System Standards may regulate the staffing levels and employee qualifications, training, dress, and appearance of your HydroDog Business. Any Designated Owner or General Manager must complete the mandatory training to our satisfaction.
Either you, your Designated Owner if you are an entity, or any General Manager must be present to operate the business during all business hours.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee operates as a business entity, they must complete and update a statement of ownership (Attachment B) throughout the term of the Franchise Agreement, providing Hydrodog with a copy of any updates within 30 days of making them. The Hydrodog business must be managed by a shareholder, partner, or member who is a natural person, holding at least a 10% interest in the franchisee entity. This person must be designated in writing to Hydrodog as the decision-maker for the franchisee entity and be primarily responsible for communication with Hydrodog about the business; this person is referred to as the 'Designated Owner'.
Under certain circumstances, Hydrodog may allow the franchisee to appoint a designated manager ('General Manager') to run the day-to-day operations of the franchised business; the General Manager does not need to have an ownership interest in the franchisee entity. All persons who own 20% or more of the beneficial ownership interests in the entity, along with their respective spouses, must personally and unconditionally guarantee the franchise owner's performance under the Franchise Agreement by signing the Owners Agreement (Attachment D).
The Designated Owner has the authority to speak for and bind the franchise owner in all matters pertaining to the Franchise Agreement and all matters relating to the Hydrodog business. System Standards may regulate the staffing levels and employee qualifications, training, dress, and appearance of your HydroDog Business. Any Designated Owner or General Manager must complete the mandatory training to Hydrodog's satisfaction. Either the franchisee, the Designated Owner (if the franchisee is an entity), or any General Manager must be present to operate the business during all business hours.