What is the 'Notification Date' in the context of Hydrodog's option to purchase the Business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Exercise of Option. Upon our termination of this Agreement in accordance with its terms and conditions, or your termination of this Agreement without cause, we reserve the right, exercisable by providing written notice to you within sixty (60) days from the date of such termination, to purchase the Business from you, including the leasehold rights to the HydroDog Vehicle. (The date on which we notify you whether or not we are exercising our option is referred to in this Agreement as the "Notification Date").
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Notification Date refers to the date on which Hydrodog notifies a franchisee whether or not it is exercising its option to purchase the franchisee's business. This option becomes relevant if the Franchise Agreement is terminated either by Hydrodog according to its terms, or by the franchisee without cause. Hydrodog has a 60-day window from the termination date to provide written notice of its intent to purchase the business.
For a prospective Hydrodog franchisee, the Notification Date is a critical point in the event of a termination. If Hydrodog decides to exercise its purchase option, the franchisee will be subject to the terms and conditions outlined in the Franchise Agreement regarding the sale of the business. If Hydrodog does not exercise this option, the franchisee is then obligated to take certain steps, such as notifying telephone companies about the termination of rights to use associated phone numbers and de-identifying the HydroDog Vehicle to remove any association with Hydrodog's trademarks and goodwill.
The purchase of the Hydrodog business includes the leasehold rights to the HydroDog Vehicle. The purchase price will be the fair market value, but will not include any value for the Franchise, Marks, Copyrights, or participation in the HydroDog network. The franchisee should be aware of the implications of this clause, particularly regarding the valuation of their business upon termination.
Understanding the Notification Date and Hydrodog's option to purchase the business is essential for any potential franchisee, as it directly impacts their rights and obligations upon termination of the Franchise Agreement. Franchisees should carefully consider these terms and seek legal counsel to fully understand their implications.