Is Hydrodog restricted from selling securities in a public offering without affecting the franchisee's obligations?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 By Us. We have the exclusive right to transfer or assign this Agreement or any part of our rights or obligations under this Agreement to any person or legal entity, without your prior consent. You agree that we will have no liability after the effective date of the transfer or assignment for the performance of any obligations under this Agreement, unless otherwise stipulated in the terms of the transfer or assignment. You acknowledge that we can sell our assets; sell securities in a public offering or in a private placement; merge with, acquire, or be acquired by another company; or undertake a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring, without restriction and without affecting your obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog faces no restrictions on selling securities in a public offering. This action does not affect a franchisee's obligations under the franchise agreement.
Specifically, Hydrodog retains the right to sell assets, sell securities (either in a public offering or private placement), merge with or be acquired by another company, or undertake financial restructuring without any limitations. These actions do not alter or diminish the franchisee's responsibilities and duties as outlined in the franchise agreement.
This provision clarifies that Hydrodog can undergo significant corporate changes without impacting the contractual obligations of its franchisees. Prospective franchisees should understand that Hydrodog can make these changes without needing franchisee consent, and the franchisee's obligations remain in effect regardless of these corporate actions.