Can an offer to purchase my Hydrodog business include other property or rights?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The offer must apply only to an interest in you or in this Agreement and your HydroDog Business and may not include an offer to purchase any of your (or your owners') other property or rights.
However, if the offeror proposes to buy any other property or rights from you (or your owners) under a separate, contemporaneous offer, such separate, contemporaneous offer must be disclosed to us, and the price and terms of purchase offered to you (or your owners) for the interest in you or in this Agreement and your HydroDog Business must reflect the bona fide price offered and not reflect any value for any other property or rights.
We have the right, exercisable by written notice delivered to you or your selling owner(s) within thirty (30) days from the date of the delivery to us of both an exact copy of such offer and all other information we request, to purchase such interest for the price and on the terms and conditions contained in such offer, provided that:
(a) we may substitute cash for any form of payment proposed in such offer (with a discounted amount if an interest rate will be charged on any deferred payments);
(b) our credit will be deemed equal to the credit of any proposed purchaser;
(c) we will have not less than sixty (60) days after giving notice of our election to purchase to prepare for closing; and
(d) we are entitled to receive, and you and your owners agree to make, all customary representations and warranties given by the seller of the assets of a business or the capital stock of an incorporated business, as applicable, including, without limitation, representations and warranties as to:
(i) ownership and condition of and title to stock or other forms of ownership interest and/or assets;
(ii) liens and encumbrances relating to the stock or other ownership interest and/or assets; and
(iii) validity of contracts and the liabilities, contingent or otherwise, of the corporation whose stock is being purchased.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, an offer to purchase your Hydrodog business must apply only to your interest in the franchise agreement and the Hydrodog business itself. The offer cannot include any of your or your owners' other property or rights. This means that the sale of the Hydrodog business must be a separate transaction from any other assets you or your owners may be selling.
However, if a potential buyer makes a separate, simultaneous offer to buy other property or rights from you or your owners, you must disclose this to Hydrodog. The price and terms offered for your interest in the Hydrodog business must reflect a genuine price and not include any value from these other properties or rights. This ensures that the valuation of the Hydrodog business is transparent and not inflated by unrelated assets.
Hydrodog retains the right of first refusal, allowing them to purchase your interest in the franchise for the same price and terms as the offer you received. They have 30 days from receiving a copy of the offer to exercise this right. Hydrodog can substitute cash for any proposed form of payment and their credit will be considered equal to any proposed purchaser's credit. Hydrodog will have at least 60 days to prepare for closing after giving notice of their election to purchase. They are also entitled to customary representations and warranties from you as the seller.