What happens if the standard franchise agreement terms cannot be applied to a Hydrodog renewal?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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, if Hydrodog chooses not to renew a franchise, certain laws may legally obligate them to do so. In this case, 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, if allowed by law. If Hydrodog is not offering new franchises at that time, the renewal period will be subject to the terms in the franchise agreement that Hydrodog indicates. If neither of those options is allowed, the renewal term will be governed by the terms of the current franchise agreement.
This means that a Hydrodog franchisee's renewal terms could vary significantly depending on the legal requirements at the time of renewal and the franchise agreements Hydrodog is offering to new franchisees. The franchisee may be subject to materially different terms, including higher fees, different territory rights, and modified operational requirements. This could impact the profitability and operational aspects of the franchise.
It is important for a prospective Hydrodog franchisee to understand the laws in their jurisdiction regarding franchise renewal and to discuss with Hydrodog what franchise agreement terms would apply in the event of a renewal. This will help the franchisee to make an informed decision about investing in a Hydrodog franchise and to plan for the future of their business.