What happens if a Hydrodog franchisee or their owner is convicted of a felony that could adversely affect the reputation of Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (l) you (or any of your owners) are or have been convicted by a trial court of, or plead or have pleaded no contest, or guilty, to, a felony or other serious crime or offense that, in our sole discretion, is likely to adversely affect your reputation, our reputation, or the reputation of any other HydroDog Business;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee or any of their owners are convicted of a felony (or plead no contest or guilty) that Hydrodog, in its sole discretion, believes is likely to negatively impact the franchisee's, Hydrodog's, or any other Hydrodog business's reputation, it constitutes a breach of the franchise agreement. This clause grants Hydrodog significant power to determine what actions might harm its brand and to take action against the franchisee.
This provision means that a Hydrodog franchisee's business can be jeopardized by legal issues of the owner, even if those issues are not directly related to the operation of the franchise. The determination of whether the crime or offense is serious enough to affect the reputation of Hydrodog is at the sole discretion of Hydrodog, which introduces an element of subjectivity and potential risk for the franchisee.
For a prospective Hydrodog franchisee, this underscores the importance of maintaining a clean legal record and ensuring that all owners associated with the franchise do the same. It also highlights the need to understand the types of actions Hydrodog might consider damaging to its reputation. Franchisees should seek clarification from Hydrodog regarding what specific types of convictions could lead to termination of the agreement.