If a separate offer for other property is made alongside an offer for my Hydrodog business, what must be disclosed to Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
However, if the offeror proposes to buy any other property or rights from you (or your owners) under a separate, contemporaneous offer, such separate, contemporaneous offer must be disclosed to us, and the price and terms of purchase offered to you (or your owners) for the interest in you or in this Agreement and your HydroDog Business must reflect the bona fide price offered and not reflect any value for any other property or rights.
We have the right, exercisable by written notice delivered to you or your selling owner(s) within thirty (30) days from the date of the delivery to us of both an exact copy of such offer and all other information we request, to purchase such interest for the price and on the terms and conditions contained in such offer, provided that:
(a) we may substitute cash for any form of payment proposed in such offer (with a discounted amount if an interest rate will be charged on any deferred payments);
(b) our credit will be deemed equal to the credit of any proposed purchaser;
(c) we will have not less than sixty (60) days after giving notice of our election to purchase to prepare for closing; and
(d) we are entitled to receive, and you and your owners agree to make, all customary representations and warranties given by the seller of the assets of a business or the capital stock of an incorporated business, as applicable, including, without limitation, representations and warranties as to:
(i) ownership and condition of and title to stock or other forms of ownership interest and/or assets;
(ii) liens and encumbrances relating to the stock or other ownership interest and/or assets; and
(iii) validity of contracts and the liabilities, contingent or otherwise, of the corporation whose stock is being purchased.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if you receive an offer to purchase your Hydrodog business that also includes a separate offer for other property or rights you own, you must disclose this separate offer to Hydrodog. The price and terms offered for your Hydrodog business must reflect its true value and not include any value attributed to the other property or rights included in the separate offer. This ensures that the value of the Hydrodog business is assessed independently.
Hydrodog has the right to purchase your interest in the franchise for the price and terms specified in the offer. To exercise this right, Hydrodog must provide written notice to you or your selling owners within thirty days of receiving a copy of the offer and any other requested information. Hydrodog can substitute cash for any proposed form of payment and their credit will be considered equal to that of any proposed purchaser.
Hydrodog will have at least sixty days after giving notice to prepare for closing the purchase. As the seller, you and your owners must provide all customary representations and warranties, including those related to ownership, condition, title to stock or other ownership interests, liens and encumbrances, and the validity of contracts and liabilities. This right of first refusal ensures that Hydrodog retains control over who becomes a franchisee and protects the integrity of the Hydrodog brand and system.