How long does Hydrodog have to exercise its right of first refusal after receiving an offer to purchase my Hydrodog business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right, exercisable by written notice delivered to you or your selling owner(s) within thirty (30) days from the date of the delivery to us of both an exact copy of such offer and all other information we request, to purchase such interest for the price and on the terms and conditions contained in such offer, provided that:
(a) we may substitute cash for any form of payment proposed in such offer (with a discounted amount if an interest rate will be charged on any deferred payments);
(b) our credit will be deemed equal to the credit of any proposed purchaser;
(c) we will have not less than sixty (60) days after giving notice of our election to purchase to prepare for closing; and
(d) we are entitled to receive, and you and your owners agree to make, all customary representations and warranties given by the seller of the assets of a business or the capital stock of an incorporated business, as applicable, including, without limitation, representations and warranties as to:
(i) ownership and condition of and title to stock or other forms of ownership interest and/or assets;
(ii) liens and encumbrances relating to the stock or other ownership interest and/or assets; and
(iii) validity of contracts and the liabilities, contingent or otherwise, of the corporation whose stock is being purchased.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has 30 days to exercise its right of first refusal. This 30-day period begins when the franchisee submits a complete copy of a bona fide offer to purchase their Hydrodog business, along with any other information Hydrodog requests. The offer must include details of payment terms and financing.
To be considered a valid offer, the purchase price must be in a specific dollar amount representing the actual consideration for the interest being transferred. The offer can only apply to the interest in the franchise or the Hydrodog business itself, and not include other property or rights unless disclosed separately with its own pricing.
If Hydrodog decides to exercise its right of first refusal, it can substitute cash for any proposed form of payment and its credit will be considered equal to any proposed purchaser's credit. Hydrodog will have at least 60 days after giving notice of its election to purchase the franchise to prepare for closing. Additionally, Hydrodog is entitled to customary representations and warranties from the seller.