If I want to sell my Hydrodog business, what kind of offer must I obtain from a potential buyer?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If you (or any of your owners) at any time determine to sell, assign or transfer for consideration an interest in this Agreement and your HydroDog Business or an ownership interest in you, you (or such owner) agree to obtain a bona fide, executed written offer and earnest money deposit (in the amount of five percent (5%) or more of the offering price) from a responsible and fully disclosed offeror (including lists of the owners of record and all beneficial owners of any corporate or limited liability company offeror and all general and limited partners of any partnership offeror) and immediately submit to us a true and complete copy of such offer, which includes details of the payment terms of the proposed sale and the sources and terms of any financing for the proposed purchase price.
To be a valid, bona fide offer, the proposed purchase price must be denominated in a dollar amount and must represent the actual consideration being paid for the interest being transferred, without any allocation of value to other assets or rights not covered by this right of first refusal.
The offer must apply only to an interest in you or in this Agreement and your HydroDog Business and may not include an offer to purchase any of your (or your owners') other property or rights.
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 decide to sell your Hydrodog business, you must first obtain a bona fide, executed written offer from a responsible buyer. This offer must include an earnest money deposit of at least five percent (5%) of the offering price. The offer must fully disclose the identity of the offeror, including the owners of record and beneficial owners if the offeror is a company. You must then provide Hydrodog with a complete copy of this offer, detailing the payment terms and financing sources for the purchase.
The offer must specify a purchase price denominated in a dollar amount that represents the actual consideration for the interest being transferred. The offer can only apply to the interest in you or the Franchise Agreement and your HydroDog Business. It cannot include any of your other property or rights. If the potential buyer intends to purchase other property or rights from you under a separate offer, this must be disclosed to Hydrodog, ensuring the price for the Hydrodog business reflects its true value and not any additional assets.
Hydrodog retains the right of first refusal, meaning they have the option to purchase your business themselves at the same price and terms offered by the third-party buyer. Hydrodog has thirty (30) days from the date they receive the offer to exercise this right by providing written notice. If Hydrodog exercises its right of first refusal, they can substitute cash for any proposed payment method and are given at least sixty (60) days to prepare for closing the purchase. Additionally, Hydrodog is entitled to customary representations and warranties from you as the seller, covering aspects such as ownership, condition, title, liens, encumbrances, and the validity of contracts.