Can modifications to Hydrodog System Standards obligate me to invest additional capital?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
and related agreements. (Franchise Agreement, Section 11.1).
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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).
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- As may be permitted by law, inspect and observe, photograph and videotape the operations of HydroDog Businesses, remove samples of any products, materials or supplies for testing and analysis, interview HydroDog Businesses' customers and personnel, and inspect and copy any books, records and documents relating to the operation of your HydroDog Business from time to time to assist you in complying with the Franchise Agreement and all System Standards. (Franchise Agreement, Section 14.1).
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- Provide ongoing training as described later in this Item (Franchise Agreement, Section 7).
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 may require franchisees to invest additional capital. Hydrodog has the ability to issue, modify, and supplement these System Standards, which include mandatory and suggested specifications, standards, operating procedures, and rules for Hydrodog Businesses. These modifications can accommodate regional or local variations or to comply with laws and regulations.
These changes to Hydrodog's System Standards may obligate a franchisee to invest additional capital in their Hydrodog Business and/or incur higher operating costs. However, the FDD states that these modifications will not alter a franchisee's fundamental status and rights under the Franchise Agreement.
As an example, the FDD states that franchisees must update or upgrade the Computer System, including any point-of-sale system components and software, as Hydrodog requires at any time during the term of the franchise, at the franchisee's sole expense. Hydrodog estimates that the cost of optional or required maintenance, updating, upgrading or support contract will be between $100 and $1,000 per year. While Hydrodog provides an estimate of the annual cost of any maintenance, updating, upgrading, or support contracts, there is no contractual limit on the frequency or cost of the franchisee's obligation to upgrade or update the Computer System.