Does Hydrodog reserve the right to acquire, merge, or affiliate with other businesses, even if they are competitive?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.5 Rights We Reserve. We (and our affiliates) retain the right, in our Business Judgment, to:
- (d) acquire, merge, affiliate with or engage in any transaction with other businesses (whether competitive or not), with units located anywhere, including arrangements in which we are acquired, and/or company-owned, franchised or other businesses (including your HydroDog Business) are converted to another format, maintained under the System or otherwise. Your HydroDog Business will fully participate in any such conversion subject to any person/entity merging with, or acquiring us, reimbursing you for reasonable costs directly related to such conversion.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog retains the right to engage in transactions with other businesses, including acquisitions, mergers, and affiliations, regardless of whether those businesses are competitive. This means Hydrodog can merge with or acquire a direct competitor without franchisee consent.
This right extends to arrangements where Hydrodog itself is acquired, or where company-owned, franchised, or other businesses are converted to another format. The FDD states that Hydrodog franchisees will fully participate in any such conversion.
However, if Hydrodog merges with or is acquired by another entity, franchisees will be reimbursed for reasonable costs directly related to the conversion of their HydroDog Business. This provides some financial protection to the franchisee in the event of a significant change in the brand's ownership or business model.