Will Hydrodog be liable to any person or legal entity who is not a party to the agreement because of the agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither we nor you will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name or on behalf of the other, represent that our respective relationship is other than franchisor and franchisee or be obligated by or have any liability under any agreements or representations made by the other that are not expressly authorized in writing. Under no circumstances shall we be held liable for any damages, whether direct or indirect, to any person or property arising out of the operation of your HydroDog Business or the business you conduct under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, Hydrodog will not be held liable for damages to any person or property resulting from the operation of a franchisee's Hydrodog business. The franchise agreement specifies that neither Hydrodog nor the franchisee will make agreements, warranties, or incur debts on behalf of the other, unless expressly authorized in writing. The agreement clearly states that the relationship between Hydrodog and its franchisees is that of franchisor and franchisee, and neither party is obligated by agreements or representations made by the other without explicit written authorization.
This provision protects Hydrodog from potential liabilities arising from the franchisee's business operations. It reinforces the independent contractor status of the franchisee, ensuring that Hydrodog is not responsible for the franchisee's debts, obligations, or any damages resulting from their business activities. This is a common arrangement in franchising, where franchisees operate their businesses independently and are responsible for their own actions and liabilities.
Furthermore, the franchisee is required to indemnify Hydrodog against any claims or liabilities arising from the operation of their Hydrodog business, even if Hydrodog's negligence is alleged but not proven. This indemnification clause requires the franchisee to defend and hold harmless Hydrodog and its affiliates from any claims, damages, and costs associated with the franchisee's business. This includes legal fees, investigation costs, and other expenses incurred in defending against such claims. This provision remains in effect even after the termination or expiration of the franchise agreement, providing long-term protection for Hydrodog.