Does Hydrodog's imposition of non-compliance fees waive other rights or remedies?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
arges, together with a five hundred dollar ($500) administrative fee for our expenses and efforts in connection with such procurement, shall be payable by you immediately upon notice.
- 6.18 Non-Compliance Fee. In the event you are, at any time during the term of this Agreement, found to not be in compliance with the terms hereof and/or the System Standards or this Agreement and have failed to cure such failure within the stated cure period herein, you agree to pay to us two hundred fifty dollars ($250) the first time you are found to not be in-compliance with the System; five hundred dollars ($500) for the second time you are found to not be in-compliance with the System; and seven hundred fifty dollars ($750) for the third and any subsequent times you are found to not be in-compliance with the System. Our election to impose non-compliance fees shall not waive or limit any other rights or remedies we may have under this Agreement, including but not limited to our right to later terminate this Agreement for the same or different breaches. 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. We may, in our sole and absolute discretion, choose to grant you an opportunity to cure the non-compliance prior to imposing the Non-Compliance Fee or pursuing other remedies, but we have no obligation to do so and our choice to grant a cure opportunity in one instance does not require us to do so in any other instance. We shall have the right to require any form of verification to determine non-compliance, with or without cause, includin
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the imposition of non-compliance fees does not waive or limit any other rights or remedies that Hydrodog may have under the Franchise Agreement. This means that even if Hydrodog charges a franchisee a non-compliance fee, it still retains the right to pursue other actions, including terminating the agreement for the same or different breaches. Hydrodog also reserves the right to notify a franchisee's credit union or banking institution if the non-compliance is monetary in nature.
The non-compliance fees are $250 for the first instance, $500 for the second, and $750 for the third and any subsequent instances of non-compliance. These fees and the banking notification are in addition to any other rights or remedies Hydrodog may have under the agreement or at law. Hydrodog may choose to grant a franchisee an opportunity to correct the non-compliance before imposing the fee or pursuing other remedies, but it is not obligated to do so.
Hydrodog has the right to require any form of verification to determine non-compliance, including documentation, photos, and video tours, and franchisees must furnish such verification within 72 hours of the request. Hydrodog also has the right to make personal visits to the franchisee's Hydrodog Business without notice. This allows Hydrodog to actively monitor compliance with the franchise agreement and system standards.
This policy ensures that Hydrodog retains maximum flexibility in addressing franchisee non-compliance, using non-compliance fees as one tool among many available to enforce the agreement and protect the brand. Prospective franchisees should be aware that these fees are not a substitute for full compliance and that Hydrodog can take further action if necessary.