Can modifications to Hydrodog System Standards obligate me to incur higher operating costs?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Issue, modify and supplement System Standards for your HydroDog Business. These may establish minimum or maximum prices to the extent permitted by law. We may periodically modify System Standards, which may accommodate regional or local variations as we determine or to comply with applicable laws, rules and regulations, and these modifications may obligate you to invest additional capital in the HydroDog Business and/or incur higher operating costs. However, these modifications will not alter your fundamental status and rights under the Agreement. (Franchise Agreement, Section 11.3).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, modifications to the System Standards can indeed obligate a franchisee to incur higher operating costs. Hydrodog retains the right to issue, modify, and supplement these System Standards for the Hydrodog Business. These modifications may be implemented to accommodate regional or local variations or to comply with applicable laws, rules, and regulations.
These changes to Hydrodog's System Standards may require a franchisee to invest additional capital in the Hydrodog Business and/or lead to increased operating costs. However, the FDD states that these modifications will not alter the franchisee's fundamental status and rights under the Franchise Agreement.
In addition to changes in System Standards, Hydrodog franchisees are obligated to maintain and update their Computer System, including point-of-sale components and software, as required by Hydrodog, and at their sole expense. Hydrodog estimates that the cost of optional or required maintenance, updating, upgrading, or support contracts for the Computer System will be between $100 and $1,000 per year. However, there is no contractual limit on the frequency or cost of the obligation to upgrade or update the Computer System.