Can Hydrodog require franchisees to establish an operating account with a designated bank?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Through, and as part of, the Business Management System we may require that you establish an operating account with a bank or other financial institution that we designate or approve (the "Operating Account").
The Operating Account shall be the primary bank account utilized by your HydroDog Business.
We shall have the right to make automated withdrawals from the Operating Account for agreed-upon fees and payments due to us.
We, in our sole judgment, shall have the right to designate one of our officers or authorized representatives to have signature rights to the Operating Account, solely for the purpose of conducting transactions related to the franchise agreement.
You must utilize the Operating Account in accordance with the System Standards as we designate (e.g.
Business Management System rules).
We may change, alter or amend the functions, components, System Standards, Computer System, Purchase Order System, Technology Fund and any other aspect of the Business Management System from time-to-time.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may require franchisees to establish an operating account with a designated bank or financial institution. This operating account would be the primary bank account used for the franchisee's HydroDog Business.
Hydrodog retains the right to make automated withdrawals from this operating account for agreed-upon fees and payments owed to them. Additionally, Hydrodog, in its sole judgment, can designate one of its officers or authorized representatives to have signature rights to the account, but solely for conducting transactions related to the franchise agreement.
The franchisee is obligated to use the operating account in accordance with Hydrodog's System Standards. Hydrodog also retains the right to modify any aspect of the Business Management System, which includes the operating account's functions and components, from time to time. This gives Hydrodog significant control over the franchisee's finances and banking practices.