What information about the offeror must be disclosed to Hydrodog when I submit an offer to sell my Hydrodog business?
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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee decides to sell their Hydrodog business, they must first obtain a bona fide, executed written offer along with an earnest money deposit of at least five percent of the offering price from a responsible offeror. This offer must then be submitted to Hydrodog.
The offeror must be fully disclosed, including a list of the owners of record and all beneficial owners if the offeror is a corporation or limited liability company. If the offeror is a partnership, the franchisee must provide a list of all general and limited partners. The offer submitted to Hydrodog must include details of the payment terms for the proposed sale, as well as the sources and terms of any financing intended to cover the purchase price.
To be considered valid, the proposed purchase price must be denominated in a dollar amount and represent the actual consideration for the interest being transferred. The offer can only apply to the interest in the franchisee or the Franchise Agreement and the Hydrodog business. It cannot include an offer to purchase any other property or rights of the franchisee or their owners. However, if the offeror proposes to buy other property or rights under a separate offer, this must also be disclosed to Hydrodog, ensuring the price for the Hydrodog business reflects its true value and not any additional assets.