Does any other party have any rights because of the Hydrodog agreement, except as specifically described in the agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
right to vote fifty-one percent (51%) or more of its issued and outstanding ownership interests (like stock or partnership interests) and you guarantee its performance under this Agreement. All other owners are subject to our approval. The organizational or governing documents of your HydroDog Business Entity must recite that the issuance and transfer of any ownership interests in your HydroDog Business Entity are restricted by the terms of this Agreement, are subject to our approval, and all certificates or other documents representing ownership interests in your HydroDog Business Entity must bear a legend referring to the restrictions of this Agreement. As a condition of our approval of the issuance or transfer of ownership interests to any person other than you, we may require (in addition to the other requirements we have the right to impose) that the proposed owner execute an agreement, in a form provided or approved by us, agreeing to be bound jointly and severally by, to comply with, and to guarantee the performance of, all of your obligations under this Agreement.
- 15.5 Transfer Upon Death or Disability.
Upon your death or disability or, if you are a Business Entity, the death or disability of the owner of a controlling interest in you, your or such owner's executor, administrator, conservator, guardian or other personal representative must transfer your interest in this Agreement or such owner's interest in you to a third party.
Such disposition of this Agreement or the interest in you (including, without limitation, transfer by bequest or inheritance) must be completed within a reasonable time, not to exceed 6 months from the date of death or disability, provided that we may extend this period for up to an additional 6 months upon written request showing good cause for such extension, and will be subject to all of the terms and conditions applicable to transfers contained in this Section.
A failure to transfer your interest in this Agreement or the ownership interest in you within this period of time constitutes a breach of this Agreement.
For purposes of this Agreement, the term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you or an owner of a controlling interest in you from managing and operating your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a third party may have rights under the franchise agreement in specific circumstances. If the franchisee is a business entity, the organizational documents must state that ownership transfers are restricted by the franchise agreement and subject to Hydrodog's approval. Furthermore, any documents representing ownership must bear a legend referring to these restrictions.
As a condition of approving the issuance or transfer of ownership interests to someone other than the original franchisee, Hydrodog may require the proposed new owner to sign an agreement. This agreement would bind the new owner jointly and severally to comply with and guarantee the performance of all the original franchisee's obligations under the franchise agreement. This ensures that Hydrodog has recourse to the new owner for any failures to meet the agreement's requirements.
Additionally, Hydrodog has the right to regulate the form of confidentiality and non-competition agreements that a franchisee uses with its employees and independent contractors. Hydrodog can also be a third-party beneficiary of these agreements, giving Hydrodog independent enforcement rights against the franchisee's personnel. This allows Hydrodog to directly protect its confidential information and enforce non-competition terms, even if the franchisee does not.