factual

Is Hydrodog liable for disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

We shall not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog will not be held liable for any disagreements that may arise between franchisees concerning customer account transfers or the associated Customer Account Transfer Fees. This means that if two Hydrodog franchisees have a dispute over the transfer of a customer account, including the fee for that transfer, Hydrodog will not be responsible for resolving the dispute or covering any resulting costs or damages.

This lack of liability for Hydrodog places the onus on the franchisees to negotiate and resolve these issues independently. If franchisees cannot agree on a Customer Account Transfer Fee within thirty days of the initial written request, Hydrodog retains the right, but not the obligation, to determine a reasonable Customer Account Transfer Fee that shall be binding on both parties.

This policy is important for prospective franchisees to understand, as it highlights the need for clear communication and negotiation skills when dealing with other franchisees regarding customer accounts. It also underscores the importance of carefully documenting all agreements related to customer account transfers, as any disputes will need to be resolved between the franchisees themselves, without Hydrodog's intervention.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.