What are the responsibilities of the executor in managing the Hydrodog business after the franchisee's death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
utes 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.
- 15.6 Operation Upon Death or Disability. If, upon your death or disability or the death or disability of the owner of a controlling interest in you, your HydroDog Business is not being managed by a trained Manager, your or such owner's executor, administrator, conservator, guardian or other personal representative must, within a reasonable time not to exceed three (3) months from the date of death or disability, appoint a Manager to operate your HydroDog Business. Such Manager will be required to complete training at your expense. Pending the appointment of a Manager as provided above or if, in our judgment, your HydroDog Business is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a Manager for your HydroDog Business. All funds from the operation of your HydroDog Business during the management by our appointed Manager will be kept in a separate account, and all expenses of your HydroDog Business, including compensation, other costs and travel and living expenses of our Manager, will be charged to this account. We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Fund Fees and contributions payable under this Agreement) during the period that our appointed Manager manages your HydroDog Business, which will not exceed four hundred dollars ($400) per day plus our reasonable expenses. Operation of your HydroDog Business during any such period will be on your behalf, provided that we shall use commerc
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, in the event of the franchisee's death or disability, or the death or disability of an owner with a controlling interest, the executor, administrator, conservator, guardian, or other personal representative has specific responsibilities for the Hydrodog business. The primary responsibility is to appoint a trained manager to operate the Hydrodog business within three months of the date of death or disability. This ensures the continuity of the business operations during a difficult transition. The appointed manager will need to complete Hydrodog's training program, and the cost of this training will be borne by the franchisee's estate or the owner's representative.
If the appropriate representative fails to appoint a manager or if Hydrodog believes the business is not being managed properly, Hydrodog has the right, but not the obligation, to appoint a manager. During the period managed by Hydrodog's appointed manager, all funds from the business's operation will be kept in a separate account. All expenses related to the business, including the manager's compensation, costs, and travel expenses, will be charged to this account. This arrangement ensures that the business continues to operate and that all financial transactions are transparent and accounted for separately.
Hydrodog also has the right to charge a reasonable management fee, in addition to the standard royalty and marketing fund fees, during the period their appointed manager is in charge. This management fee will not exceed $400 per day, plus reasonable expenses. While Hydrodog will use commercially reasonable efforts in operating the business, they will not be liable for any debts, losses, or obligations incurred by the business during this period, nor will they be liable to any of the business's creditors for products, materials, supplies, or services purchased. This provision protects Hydrodog from liability while ensuring the business continues to operate under their guidance until a suitable transfer or management arrangement can be made.