If a Hydrodog franchisee's non-compliance is monetary, does Hydrodog reserve the right to notify the franchisee's bank?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If your non-compliance is monetary in nature, we reserve the right to notify your credit union or other banking institution that issued a loan or line of credit for your HydroDog Business of your failure to comply with this Agreement.
You agree that such fee and banking notification is in addition to any other rights or remedies we may have under this Agreement or at law.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee's non-compliance is monetary, Hydrodog reserves the right to notify the franchisee's credit union or other banking institution that issued a loan or line of credit for the Hydrodog Business of the franchisee's failure to comply with the agreement.
This notification is in addition to any other rights or remedies Hydrodog may have under the agreement or at law. This means that Hydrodog can pursue other legal or contractual options to address the non-compliance, even after notifying the franchisee's bank.
This clause in the franchise agreement is significant for prospective franchisees as it highlights the potential financial risks and consequences of non-compliance. It is important for franchisees to maintain good financial standing and adhere to the terms of the agreement to avoid such notifications, which could negatively impact their credit and relationship with their lending institution.