Who is responsible for transferring the Hydrodog franchise interest upon the death or disability of the owner of a controlling interest in a business entity?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ip interests to any person other than you, we may require (in addition to the other requirements we have the right to impose) that the proposed owner execute an agreement, in a form provided or approved by us, agreeing to be bound jointly and severally by, to comply with, and to guarantee the performance of, all of your obligations under this Agreement.
- 15.5 Transfer Upon Death or Disability. Upon your death or disability or, if you are a Business Entity, the death or disability of the owner of a controlling interest in you, your or such owner's executor, administrator, conservator, guardian or other personal representative must transfer your interest in this Agreement or such owner's interest in you to a third party. Such disposition of this Agreement or the interest in you (including, without limitation, transfer by bequest or inheritance) must be completed within a reasonable time, not to exceed 6 months from the date of death or disability, provided that we may extend this period for up to an additional 6 months upon written request showing good cause for such extension, and will be subject to all of the terms and conditions applicable to transfers contained in this Section. A failure to transfer your interest in this Agreement or the ownership interest in you within this period of time constitutes 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, in the event of the death or disability of the owner of a controlling interest in a Hydrodog franchise business entity, the responsibility for transferring the franchise interest falls to the owner's executor, administrator, conservator, guardian, or other personal representative. This representative is tasked with transferring the owner's interest in the Franchise Agreement or the owner's interest in the business entity to a third party.
The transfer must be completed within a reasonable timeframe, specifically no more than 6 months from the date of death or disability. However, an extension of up to an additional 6 months may be granted by Hydrodog upon written request, provided there is a valid reason for the extension. Failure to transfer the interest within the specified time frame constitutes a breach of the Franchise Agreement.
During the period following the death or disability, if the Hydrodog business is not being managed by a trained manager, the personal representative is required to appoint a manager within three months to oversee the business operations. This manager will need to complete Hydrodog's training program at the expense of the franchise. If the personal representative fails to appoint a manager or if Hydrodog deems the business is not being properly managed, Hydrodog reserves the right to appoint a manager. Funds from the business's operation will be kept in a separate account to cover expenses, including the manager's compensation, costs, and travel. 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.