What happens if laws legally obligate Hydrodog to renew a franchise despite their choice not to?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Renewal Under Law.
Even though we may choose not to renew your franchise, certain laws, rules, regulations, statutes, ordinances, or legal orders that are applicable in your jurisdiction at the time may legally obligate us to do so.
If that happens, to the extent it is allowed by the concerned law, rule, regulation, statute, ordinance or order, your renewal term will be subject to the conditions of the franchise agreement we are using for new franchisees at the time the renewal period begins.
If we are not then offering new franchises, your renewal period will be subject to the terms in the franchise agreement that we indicate.
If for any reason that is not allowed, the renewal term will be governed by the terms of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, even if Hydrodog chooses not to renew a franchise agreement, certain laws may legally obligate them to do so. In such cases, the renewal term will be subject to the conditions of the franchise agreement Hydrodog is using for new franchisees at the time the renewal period begins, but only to the extent allowed by the applicable law. This means a renewing franchisee might have to agree to terms that are different from their original agreement, potentially including higher fees or modified operational requirements.
If Hydrodog is not offering new franchises at the time of renewal, the renewal period will be subject to the terms in the franchise agreement that Hydrodog indicates. However, if applying the terms of a new franchise agreement is not allowed by law, the renewal term will be governed by the terms of the original franchise agreement.
This clause protects the franchisee in situations where local laws prevent Hydrodog from non-renewal. However, the franchisee may be subject to a new franchise agreement if the local laws allow it. Franchisees should consult with legal counsel to understand their rights and obligations under local laws regarding franchise renewal.