Does Hydrodog have the right to assign its option to purchase the Business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Exercise of Option. Upon our termination of this Agreement in accordance with its terms and conditions, or your termination of this Agreement without cause, we reserve the right, exercisable by providing written notice to you within sixty (60) days from the date of such termination, to purchase the Business from you, including the leasehold rights to the HydroDog Vehicle. (The date on which we notify you whether or not we are exercising our option is referred to in this Agreement as the "Notification Date"). We have the unrestricted right to assign this option to purchase the Business. We will be entitled to all customary warranties and representations in connection with our asset purchase, including, without limitation, representations and warranties as to ownership and condition of and title to assets; liens and encumbrances on assets; validity of contracts and agreements; and liabilities affecting the assets, contingent or otherwise.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to assign its option to purchase the business. Specifically, if Hydrodog terminates the Franchise Agreement, or if the franchisee terminates the agreement without cause, Hydrodog has the right to purchase the business.
Hydrodog can exercise this right by providing written notice within 60 days of termination. The FDD states that Hydrodog has the unrestricted right to assign this option to purchase the business to another party.
This means that if Hydrodog decides to purchase the franchise, they are not obligated to manage or operate it themselves. They can transfer the right to another entity. For a potential franchisee, this highlights the importance of understanding the conditions under which Hydrodog can terminate the agreement and exercise its purchase option, as well as the possibility that the business could be sold to an unknown third party.