factual

Can Hydrodog terminate the franchise agreement for customer service failures?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

failure within sixty (60) days after written notice of such material failure is delivered to us, you may terminate this Agreement effective 60 days after delivery to us of written notice of termination. Your termination of this Agreement for any other reason or without such notice will be deemed a termination without cause, and is a breach of this Agreement by you.

  • 16.2 By Us. Subject to applicable state law and any required notice and cure periods mandated by state franchise laws, we have the right to terminate this Agreement, effective upon delivery of written notice of termination to you, if:
    • (a) you (or any of your owners) have made any material misrepresentation or omission in connection with your purchase of the Franchise;
    • (b) you fail to meet or exceed the Territory Development Schedule for six (6) consecutive months;
    • (c) you or the required number of your personnel fail to successfully complete initial training to our satisfaction or you have not fulfilled all of the conditions for management of your HydroDog Business described in this Agreement;
    • (d) you fail to open your HydroDog Business within thirty (30) days after receipt of your HydroDog Vehicle;
    • (e) you fail to comply in all respects with the requirements of any customer service program or customer retention program, or you fail to achieve customer satisfaction index results we required for any customer service program, or you fail to achieve customer retention rate results we require for any customer retention program;
    • (f) you abandon or fail to actively operate your HydroDog Business for five (5) or more consecutive business days, unless your HydroDog Business has been closed for a purpose we have approved or because of casualty or government order;
    • (g) you surrender or transfer control of the operation of your HydroDog Business without our prior written consent;

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog can terminate the franchise agreement if a franchisee fails to comply with customer service or retention programs. Specifically, Hydrodog can terminate the agreement if the franchisee fails to meet the requirements of any customer service program or customer retention program, fails to achieve the required customer satisfaction index results for any customer service program, or fails to achieve the required customer retention rate results for any customer retention program.

These failures are determined by Hydrodog in its sole business judgment. If a franchisee fails to meet these customer service standards, Hydrodog has the right to terminate the agreement effective immediately upon written notice.

In addition to termination, Hydrodog can also require mandatory attendance at a remedial training program at the franchisee's expense, deem the territory non-exclusive, authorize another person to operate a HydroDog business within the territory, and/or impose monetary penalties as specified in the operations manual. This highlights the importance Hydrodog places on customer service and satisfaction, and the potential consequences for franchisees who do not meet the brand's standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.