Can Hydrodog suspend a franchisee's rights for failing to comply with System Standards?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog can suspend a franchisee's rights under the franchise agreement for failing to comply with System Standards. Specifically, if a franchisee fails to comply with any System Standards or Capital Modifications within the specified time period, Hydrodog has the right to suspend the franchisee's rights until compliance is achieved. This is in addition to other potential penalties. System Standards are the mandatory and suggested specifications, standards, operating procedures, and rules that Hydrodog prescribes for the operation of a HydroDog Business, as detailed in the Manuals.

Hydrodog will notify a franchisee if their HydroDog Business or Vehicle's appearance, equipment, signs, or decor does not meet System Standards following an inspection. The franchisee then has thirty days to correct the deficiencies. Failure to correct the deficiencies within this period may result in a non-compliance fee. Hydrodog also reserves the right to correct the deficiencies themselves at the franchisee's expense.

Furthermore, if a Hydrodog franchisee fails three inspections within a 12-month period, Hydrodog has the option to temporarily suspend the franchisee's operations until compliance is achieved. This highlights the importance of adhering to Hydrodog's System Standards and maintaining the required standards for the business and vehicle. A prospective franchisee should understand these standards and the potential consequences of non-compliance before investing in a Hydrodog franchise.