If a Cooperative issue is submitted to Hydrodog for consideration due to an impasse, is Hydrodog's resolution binding?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) if an impasse occurs because of a Cooperative members' inability or failure, within 45 days, to resolve any issue affecting the Cooperative's establishment or effective functioning, upon request of any Cooperative member, that issue must be submitted to us for consideration, and our resolution of such issue is final and binding on all Cooperative members.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a Cooperative cannot resolve an issue within 45 days, any member can request Hydrodog to consider the issue. Hydrodog's resolution is final and binding on all Cooperative members. This means that franchisees must adhere to Hydrodog's decision, even if they disagree with it.
This clause gives Hydrodog significant control over the Cooperatives and their operations. While Cooperatives are intended to allow franchisees to collaborate on marketing and advertising, Hydrodog retains the ultimate authority to resolve disputes. This could potentially limit the autonomy of the Cooperative and its members.
For a prospective Hydrodog franchisee, this means understanding that while they will participate in a Cooperative, Hydrodog has the final say in any unresolved issues. Franchisees should carefully consider this when evaluating the potential benefits and drawbacks of joining the Hydrodog franchise system, and how much influence they will actually have over marketing decisions.