What is the 'Notification Date' referenced in the HydroDog agreement?
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"). We have the unrestricted right to assign this option to purchase the Business. We will be entitled to all customary warranties and representations in connection with our asset purchase, including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise.
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 will exercise its option to purchase the franchisee's business. This notification must be provided to the franchisee within 60 days from the date of termination of the franchise agreement, whether the termination is initiated by Hydrodog or by the franchisee without cause.
If Hydrodog decides to purchase the business, the purchase price will be based on the fair market value of the business's assets, such as equipment, signs, inventory, materials, and supplies, with reasonable depreciation considered. However, the valuation will exclude any value associated with the Hydrodog franchise itself, the brand's trademarks or copyrights, or the franchisee's participation in the Hydrodog network.
If Hydrodog does not exercise its option to purchase the business, the franchisee has specific obligations. The franchisee must remove all Hydrodog branding from the business and take actions to ensure the business is clearly differentiated from other Hydrodog locations to avoid public confusion. The franchisee is also obligated to transfer phone numbers and directory listings to Hydrodog and provide evidence of compliance with these obligations within 30 days after the expiration or Notification Date.