What happens if the Hydrodog franchisees cannot agree on a Customer Account Transfer Fee?

According to Hydrodog's 2025 Franchise Disclosure Document, if two franchisees cannot agree on a Customer Account Transfer Fee within 30 days of the initial written request to transfer a customer account, Hydrodog has the right, but not the obligation, to determine a reasonable Customer Account Transfer Fee. This fee, if determined by Hydrodog, will be binding on both franchisees.

This means that while franchisees are initially given the opportunity to negotiate the transfer fee between themselves, Hydrodog retains the power to step in and set the fee if an agreement cannot be reached within the specified timeframe. This provision aims to prevent disputes from stalling the transfer of customer accounts indefinitely.

It is important to note that Hydrodog is not obligated to set a fee. They have the option to remain uninvolved. However, if Hydrodog does decide to intervene, both franchisees must accept the fee that Hydrodog determines. This mechanism ensures that customer accounts can be transferred efficiently, even if franchisees have conflicting valuations. This could be beneficial to a franchisee looking to expand their customer base, as it provides a potential resolution if negotiations stall.