Does the right to assert that Hydrodog has no adequate remedy at law get limited in the event of a breach?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Under no circumstances will we or any other Indemnified Party be required to seek recovery from any insurer or other third party, or otherwise to mitigate our, their or your losses and expenses, in order to maintain and recover fully a claim against you. You agree that a failure to pursue such recovery or mitigate a loss will in no way reduce or alter the amounts we or another Indemnified Party may recover from you.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
Based on the 2025 Hydrodog Franchise Disclosure Document, the franchisee's ability to seek legal remedies may be limited by the terms of the franchise agreement. Specifically, the agreement stipulates that Hydrodog is not required to mitigate losses or pursue recovery from insurers or other third parties before fully recovering a claim against the franchisee.
According to the FDD, Hydrodog is not obligated to seek recovery from any insurer or other third party to mitigate losses before pursuing a claim against the franchisee. This means Hydrodog can seek full recovery from the franchisee without first attempting to minimize the financial impact through other means. This could potentially increase the financial burden on the franchisee in the event of a claim.
This condition affects the franchisee because it means Hydrodog is entitled to pursue full compensation from the franchisee directly, regardless of other potential sources of recovery. Franchisees should be aware of this provision and understand that they could be held fully responsible for claims, even if other parties or insurance coverage could potentially offset some of the losses. Franchisees should consult with a legal professional to fully understand the implications of this clause.