What interest in a business would not be considered a passive investment for a Hydrodog franchisee?

According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee's interest in another business will not be considered a passive investment if the franchisee serves as a director, officer, or majority stockholder (or any combination thereof) in that business. This is considered a breach of the franchise agreement.

This provision is designed to ensure that Hydrodog franchisees dedicate their full attention and efforts to operating their Hydrodog business. By preventing franchisees from holding significant management roles or controlling interests in other businesses, Hydrodog aims to minimize potential conflicts of interest and maintain the quality and consistency of its brand.

For a prospective Hydrodog franchisee, this means that while passive investments in other businesses are generally permitted, taking on a leadership role or owning a majority stake in another company is prohibited. This restriction is in place to protect Hydrodog's interests and ensure that franchisees are fully committed to the success of their Hydrodog franchise. Franchisees should carefully consider this limitation before entering into a franchise agreement, especially if they have existing business interests or plan to pursue other ventures.