What standard of effort is Hydrodog held to when operating the Hydrodog business after the franchisee's death or disability?

According to Hydrodog's 2025 Franchise Disclosure Document, if the company appoints a manager to operate a Hydrodog business due to the death or disability of the franchisee, Hydrodog is held to a "commercially reasonable efforts" standard. This means that while Hydrodog will operate the business on behalf of the franchisee, they are only required to use commercially reasonable efforts in doing so.

Hydrodog does not assume liability for any debts, losses, or obligations incurred by the Hydrodog business during the period it is managed by their appointed manager, nor are they liable to any of the franchisee's creditors for any products, materials, supplies, or services purchased during this period.

This arrangement carries significant implications for a franchisee. While Hydrodog will step in to manage the business, their standard of care is limited. The franchisee or their estate remains responsible for all financial obligations and potential losses. This highlights the importance of having a succession plan and adequate insurance coverage to protect the business and the franchisee's assets in the event of death or disability.