Which section of the Hydrodog franchise agreement is modified by the addition described in this Rider?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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The franchisor will defer the collection of the initial franchise fee until the franchisor has fulfilled its initial pre-opening obligations to the franchisee and the franchisee is open for business. With respect to the multiunit development agreement, the deferral of the development fee will be pro-rated, such that the franchisee will pay the franchisor the development fee proportionally upon the opening of each unit franchise.
Item 6 of this disclosure document and Section 15.3(f) of the Franchise Agreement are amended in part to add that the Transfer Fee is subject to state law.
The Summary column of Item 17 rows (f) and (g) of this disclosure document and Section 16.2 of the Franchise Agreement are amended to add that the Franchisor's ability to terminate the Franchise Agreement and/or any related agreement is subject to state law.
The Summary column of Item 17 row (m) of this disclosure document and Section 15.3 of the Franchise Agreement are amended to remove the requirement that the Franchisor have the right to approve the material terms as a condition to transfer.
The Summary column of Item 17 row (p) of this disclosure document and Sections 15.5 and 15.6 of the Franchise Agreement are amended to provide franchisee with 6 months (or 180 days) to transfer the business in the event of death or disability.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, several sections of the franchise agreement are modified by the addition described in the rider. Specifically, the summary column of Item 17 rows (f) and (g) and Section 16.2 are amended to clarify that Hydrodog's ability to terminate the Franchise Agreement or any related agreement is subject to state law. This means that state laws may provide additional protections to franchisees regarding termination, potentially superseding the terms outlined in the franchise agreement itself.
Additionally, the summary column of Item 17 row (m) and Section 15.3 are amended to remove the requirement that Hydrodog has the right to approve the material terms as a condition to transfer the franchise. This change grants franchisees more flexibility in transferring their business without needing the franchisor's approval of every term. Furthermore, the summary column of Item 17 row (p) and Sections 15.5 and 15.6 are amended to provide the franchisee with 6 months (or 180 days) to transfer the business in the event of death or disability, and Hydrodog agrees to deal in good faith pursuant to RCW 19.100.180(1).
The first sentence of Section 18.4 of the Franchise Agreement is amended to state that the franchisee is not required to indemnify Hydrodog or its affiliates for the negligent acts or omissions of Hydrodog or its affiliates. Finally, Section 21 of the Franchise Agreement will be subject to the Washington Franchise Investment Protection Act, RCW 19.100, and the rules adopted thereunder. These modifications collectively alter the original franchise agreement, providing additional rights and protections to franchisees, particularly those operating in Washington state.