If Hydrodog modifies System Standards, might franchisees need to invest additional capital?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
t System Standards prescribed from time-to-time in the Manuals, or otherwise communicated to you in writing or other tangible form, constitute provisions of this Agreement as if fully set forth. All references to this Agreement include all System Standards as periodically modified.
- 11.3 Modification of System Standards. We may periodically modify System Standards, which may accommodate regional or local variations as we determine. Such modifications may obligate you to invest additional capital in your HydroDog Business ("Capital Modifications") and/or incur higher operating costs. However, such modifications will not alter your fundamental status and rights under this Agreement. We agree to give you at least ninety (90) days to comply with Capital Modifications we require. You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify. Your failure to comply with any System Standards or Capital Modifications within the specified time period will result in: (a) a non-compliance fee as stated in Section 6.16 (Non-Compliance Fee); (b) mandatory remedial training at your expense; (c) suspension of your rights under this Agreement until compliance is achieved; and/or (d) termination of this Agreement, as we determine in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may periodically modify System Standards. These modifications may accommodate regional or local variations. These modifications may require a franchisee to invest additional capital in their HydroDog Business and/or incur higher operating costs. These investments are referred to as "Capital Modifications".
Hydrodog will provide franchisees at least ninety (90) days to comply with any Capital Modifications. Franchisees are obligated to comply with all modifications to System Standards, including Capital Modifications, within the specified time period. Failure to comply with System Standards or Capital Modifications within the specified time period can result in a non-compliance fee, mandatory remedial training at the franchisee's expense, suspension of the franchisee's rights under the Franchise Agreement, and/or termination of the Franchise Agreement.
System Standards are prescribed from time to time in the Manuals, or otherwise communicated to the franchisee in writing or other tangible form, and constitute provisions of the Franchise Agreement. All references to the Franchise Agreement include all System Standards as periodically modified.