What is the process for requesting to purchase the rights to provide services to a customer account belonging to another Hydrodog franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.7 Customer Account Transfer Fee.
In the event, a customer account is identified by us as belonging to the territory of another franchisee, and you desire to provide services or products to such customer account, you may submit a written request to such other franchisee, with a copy of such written request provided to us, to purchase from the other franchisee the rights to provide services or products to the customer account.
The other franchisee shall have no obligation to sell or transfer the customer account to you, and we shall have no obligation to facilitate or require any such sale or transfer.
In the event the other franchisee desires to sell the rights to the customer account to you, then the other franchisee shall respond to you in writing of such acceptance of your offer, and you shall pay such other franchisee a customer account transfer fee ("Customer Account Transfer Fee") in an amount that shall be mutually agreed by both parties.
The Customer Account Transfer Fee shall be due and payable from you to the other franchisee prior to the transfer of the customer account.
If the parties cannot agree on a Customer Account Transfer Fee within thirty (30) days of the initial written request, we shall have the right, but not the obligation, to determine a reasonable Customer Account Transfer Fee that shall be binding on both parties.
Any transfer of customer accounts must be documented in writing and a copy provided to us within 7 days of the transfer.
We shall not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee identifies a customer account belonging to another franchisee's territory and wishes to provide services to that customer, they must submit a written request to the other franchisee, with a copy of the request provided to Hydrodog. The other franchisee is under no obligation to sell or transfer the customer account, and Hydrodog is not obligated to facilitate the sale or transfer.
If the other franchisee agrees to sell the rights to the customer account, they must respond in writing, and the purchasing franchisee will pay a customer account transfer fee. The amount of this fee must be mutually agreed upon by both franchisees and paid before the transfer of the customer account.
If the franchisees cannot agree on a Customer Account Transfer Fee within 30 days of the initial written request, Hydrodog has the right, but not the obligation, to determine a reasonable fee that will be binding on both parties. Any transfer of customer accounts must be documented in writing, and a copy must be provided to Hydrodog within 7 days of the transfer. Hydrodog will not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees. This process allows Hydrodog franchisees to potentially expand their customer base by acquiring accounts from other franchisees, but it also highlights the importance of territorial boundaries and the need for negotiation and agreement between franchisees.