What rights does a Hydrodog franchisee waive when accepting financing?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Parameter | Initial Franchise Fee and for additional territories |
|---|---|
| Item Financed (1) | Up to 50% of the Initial Franchise Fee |
| Source of Financing | Us |
| Down Payment | $20,000 |
| Amount Financed | Up to 50% |
| Interest Rate/Finance Charge | 8% per annum (including finance charges) |
| Period of Repayment | 60 months |
| Security Required | Personal Guarantee |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt (2) | If the franchisee is an entity, its owners must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal | Waiver of right to a jury trial; homestead and other exemptions; |
| Rights | waiver of presentment, demand, protest, notice of dishonor. |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee who accepts financing from Hydrodog waives certain legal rights. Specifically, the franchisee waives the right to a jury trial, homestead and other exemptions, and waives presentment, demand, protest, and notice of dishonor.
This means that if a Hydrodog franchisee defaults on the financing agreement, they will not be able to request a jury trial to resolve the dispute. They also give up certain protections related to their home or other assets that might otherwise be exempt from seizure in the event of a judgment against them. Additionally, the franchisee waives certain rights related to the formal presentation of a payment request, a demand for payment, or a notice that a payment was not made.
These waivers are significant because they limit the legal options available to the franchisee in case of a dispute with Hydrodog over the financing. It is important for a prospective franchisee to fully understand the implications of these waivers before accepting financing from Hydrodog and to seek legal counsel if necessary. Franchisees should consider these waivers in light of the potential risks of the business and their own financial situation.