What sections of the Hydrodog franchise agreement outline the requirements for a franchisee to renew or extend their term?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
d agreements. You should read these provisions in the agreements attached to this disclosure document.**
| Provisions | Other Agreement | Summary |
|---|---|---|
| (a) | Section 2.2 | 10 years |
| Length of the Franchise | ||
| Term | ||
| (b) | Section 3.1 | If you are in good standing, you can acquire a |
| Renewal or extension | successor franchise for an additional 10-year | |
| of the term | term on our then current terms and conditions. | |
| (c) Requirements for franchisee to renew or extend | Sections 3.1, 3.3, & 3.4 | The term "renewal" refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. You must give us written notice of your election to acquire a successor franchise; maintain possession of the HydroDog Vehicle, or secure a substitute, and being it into compliance with our then-current standards and specification; sign our then-current franchise agreement, which may be materially different except that the Royalties and Marketing Fund Fees will be the same as the prior franchise agreement; pay our then-current fees except an initial franchise fee; |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the requirements for a franchisee to renew or extend their term are detailed in Sections 3.1, 3.3, and 3.4 of the franchise agreement. If a franchisee is in good standing, they have the option to acquire a successor franchise for an additional 10-year term, but this will be based on Hydrodog's then-current terms and conditions.
To extend the franchise relationship at the end of the initial term, a franchisee must provide written notice of their intent to acquire a successor franchise. They must also maintain possession of the HydroDog Vehicle, or secure a substitute, and bring it into compliance with Hydrodog's current standards and specifications. Additionally, the franchisee is required to sign Hydrodog's then-current franchise agreement, which may differ materially from the original agreement, although the Royalties and Marketing Fund Fees will remain the same.
Furthermore, the franchisee must pay Hydrodog's then-current fees, with the exception of the initial franchise fee, and sign a general release. Finally, the franchisee must satisfactorily complete any new training and refresher programs that Hydrodog requires at the time of renewal. These provisions ensure that franchisees meet Hydrodog's standards and are up-to-date with current practices upon renewal.