What legal rights does a Hydrodog franchisee waive when accepting financing from the franchisor?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Parameter | Initial Franchise Fee and for additional territories |
|---|---|
| Item Financed (1) | Up to 50% of the Initial Franchise Fee |
| Source of Financing | Us |
| Down Payment | $20,000 |
| Amount Financed | Up to 50% |
| Interest Rate/Finance Charge | 8% per annum (including finance charges) |
| Period of Repayment | 60 months |
| Security Required | Personal Guarantee |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt (2) | If the franchisee is an entity, its owners must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal | Waiver of right to a jury trial; homestead and other exemptions; |
| Rights | waiver of presentment, demand, protest, notice of dishonor. |
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee who obtains financing from Hydrodog waives certain legal rights. Specifically, the franchisee waives the right to a jury trial, homestead and other exemptions, and waives presentment, demand, protest, and notice of dishonor.
In practical terms, this means that if a Hydrodog franchisee defaults on the financing agreement and Hydrodog takes legal action, the franchisee will not have the right to a trial by jury. They also give up certain protections related to their home or other assets that might otherwise be exempt from seizure in a legal judgment. Additionally, the franchisee waives certain rights related to the formal presentation of a payment request, demands for payment, formal declarations of default, and notifications of payment issues.
These waivers are significant because they limit the franchisee's legal recourse in the event of a dispute with Hydrodog over the financing. While such waivers are not uncommon in financing agreements, prospective franchisees should carefully consider the implications and seek legal advice to fully understand the rights they are giving up. It is important to assess the potential risks and benefits before accepting financing from Hydrodog.