Is Hydrodog required to mitigate losses before seeking recovery from a Hydrodog franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Under no circumstances will we or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog is not required to mitigate losses before seeking recovery from a franchisee. Specifically, the FDD states that Hydrodog is not required to seek recovery from any insurer or other third party, or otherwise mitigate their losses and expenses, in order to maintain and fully recover a claim against a franchisee.
This means that Hydrodog can pursue a claim against a franchisee for the full amount of the loss, regardless of whether Hydrodog could have reduced the loss by taking other actions. This could potentially increase the financial burden on the franchisee in the event of a claim.
For a prospective Hydrodog franchisee, this clause highlights the importance of understanding the full extent of their potential liability and ensuring they have adequate insurance coverage. It also emphasizes the need to diligently adhere to the franchise agreement to minimize the risk of claims.