Is Hydrodog obligated to grant a cure opportunity before imposing a Non-Compliance Fee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our sole and absolute discretion, choose to grant you an opportunity to cure the non-compliance prior to imposing the Non-Compliance Fee or pursuing other remedies, but we have no obligation to do so and our choice to grant a cure opportunity in one instance does not require us to do so in any other instance.
In the event you are, at any time during the term of this Agreement, found to not be in compliance with the terms hereof and/or the System Standards or this Agreement and have failed to cure such failure within the stated cure period herein, you agree to pay to us two hundred fifty dollars ($250) the first time you are found to not be in-compliance with the System; five hundred dollars ($500) for the second time you are found to not be in-compliance with the System; and seven hundred fifty dollars ($750) for the third and any subsequent times you are found to not be in-compliance with the System.
We shall notify you if in our judgment as a result of an inspection, your HydroDog Business's and/or HydroDog Vehicle's appearance, equipment, signs or decor does not meet the System Standards, and to provide written notification of what actions you must take to correct the deficiency(ies). You shall, within thirty (30) days after receipt of this notice, take all steps needed to correct the deficiency(ies) or be subject to the non-compliance fee described in this Agreement for each area that was not corrected within the cure period.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog is not obligated to provide a cure opportunity before imposing a Non-Compliance Fee. While Hydrodog may choose to grant a franchisee an opportunity to correct the non-compliance, they are not required to do so. This decision is at Hydrodog's sole discretion, and granting a cure in one instance does not obligate them to do so in other instances.
This policy means that a Hydrodog franchisee could be subject to a Non-Compliance Fee without prior warning or an opportunity to rectify the issue. The Non-Compliance Fee is $250 for the first instance, $500 for the second, and $750 for the third and any subsequent instances of non-compliance. This fee is in addition to any other remedies Hydrodog may pursue under the agreement or at law.
However, the FDD also states that Hydrodog will provide written notification of deficiencies identified during inspections of the HydroDog Business and/or HydroDog Vehicle, giving the franchisee 30 days to correct the issues before being subject to the non-compliance fee. This appears to contradict the statement that Hydrodog has no obligation to grant a cure period.
Prospective Hydrodog franchisees should clarify with Hydrodog the specific circumstances under which a cure period is or is not granted before a Non-Compliance Fee is imposed to fully understand their obligations and potential financial penalties.