If a Hydrodog franchisee is not in full compliance with the agreement, will a transfer be approved?

According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee's ability to transfer their franchise is contingent upon being in full compliance with the franchise agreement. Specifically, Section 15.3 states that if a franchisee is in full compliance with the agreement, Hydrodog will approve a transfer that meets all other requirements. This implies that if a franchisee is not in full compliance, a transfer will not be approved.

This condition protects Hydrodog by ensuring that new franchisees meet their standards and that existing franchisees resolve any outstanding issues before transferring ownership. It also maintains the integrity of the Hydrodog brand and system by preventing franchisees with unresolved problems from passing those issues on to a new owner.

For a prospective Hydrodog franchisee, this means maintaining diligent adherence to all terms of the franchise agreement is crucial, especially if they anticipate wanting to sell or transfer their business in the future. Failure to comply with the agreement could prevent a transfer, potentially trapping the franchisee in a business they can't sell.

It is important to note that even if a franchisee is in full compliance, Hydrodog still has other conditions for approving a transfer, such as evaluating the proposed transferee's qualifications and assessing whether the transfer is in the best interest of the Hydrodog system. Therefore, compliance is a necessary but not sufficient condition for transfer approval.