Who is responsible for the cost of training a manager appointed after the death or disability of a Hydrodog franchisee?
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
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee dies or becomes disabled and their Hydrodog business is not being managed by a trained manager, their personal representative must appoint a manager within three months. The franchisee's estate is responsible for covering the costs of this manager's training.
However, if the franchisee's representative does not appoint a manager or if Hydrodog believes the business is not being managed properly, Hydrodog has the right to appoint a manager. In this case, all funds from the business's operation will be kept in a separate account, and all expenses, including the manager's compensation, costs, and travel expenses, will be charged to this account. Hydrodog also has the right to charge a reasonable management fee, not exceeding $400 per day, plus reasonable expenses, in addition to the standard royalty and marketing fund fees.
This means that a Hydrodog franchisee needs to have a plan in place to ensure a smooth transition in case of death or disability. Otherwise, the estate will be responsible for training costs, or Hydrodog may step in and manage the business, deducting all related expenses and fees from the business's revenue. This could significantly impact the profitability of the business during the transition period.