What are the terms and conditions applicable to transfers of the Hydrodog franchise after death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ip interests to any person other than you, we may require (in addition to the other requirements we have the right to impose) that the proposed owner execute an agreement, in a form provided or approved by us, agreeing to be bound jointly and severally by, to comply with, and to guarantee the performance of, all of your obligations under this Agreement.
- 15.5 Transfer Upon Death or Disability. Upon your death or disability or, if you are a Business Entity, the death or disability of the owner of a controlling interest in you, your or such owner's executor, administrator, conservator, guardian or other personal representative must transfer your interest in this Agreement or such owner's interest in you to a third party. Such disposition of this Agreement or the interest in you (including, without limitation, transfer by bequest or inheritance) must be completed within a reasonable time, not to exceed 6 months from the date of death or disability, provided that we may extend this period for up to an additional 6 months upon written request showing good cause for such extension, and will be subject to all of the terms and conditions applicable to transfers contained in this Section. A failure to transfer your interest in this Agreement or the ownership interest in you within this period of time constitutes a breach of this Agreement. For purposes of this Agreement, the term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you or an owner of a controlling interest in you from managing and operating your HydroDog Business.
- 15.6 Operation Upon Death or Disability. If, upon your death or disability or the death or disability of the owner of a controlling interest in you, your HydroDog Business is not being managed by a trained Manager, your or such owner's executor, administrator, conservator, guardian or other personal representative must, within a reasonable time not to exceed three (3) months from the date of death or disability, appoint a Manager to operate your HydroDog Business. Such Manager will be required to complete training at your expense. Pending the appointment of a Manager as provided above or if, in our judgment, your HydroDog Business is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a Manager for your HydroDog Business. All funds from the operation of your HydroDog Business during the management by our appointed Manager will be kept in a separate account, and all expenses of your HydroDog Business, including compensation, other costs and travel and living expenses of our Manager, will be charged to this account. We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Fund Fees and contributions payable under this Agreement) during the period that our appointed Manager manages your HydroDog Business, which will not exceed four hundred dollars ($400) per day plus our reasonable expenses. Operation of your HydroDog Business during any such period will be on your behalf, provided that we shall use commercially reasonable efforts in operating the business but shall have no liability to you, your owners, or any third party for any debts, losses, or obligations incurred by your HydroDog Business or to any of your creditors for any products, materials, supplies or services your HydroDog Business purchases during any period it is managed by our appointed Manager.
- 15.7 Effect of Consent to Transfer.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if the franchisee or the owner of a controlling interest in the franchisee (if the franchisee is a business entity) dies or becomes disabled, their representative must transfer the interest in the franchise agreement or the ownership interest in the business entity to a third party. This transfer must occur within six months from the date of death or disability. Hydrodog may grant an extension of up to six additional months if there is a written request showing good cause. Failure to transfer the interest within the specified time frame constitutes a breach of the franchise agreement. Disability is defined as a mental or physical condition that prevents the franchisee or controlling owner from managing and operating the Hydrodog business.
If, upon death or disability, the Hydrodog business is not being managed by a trained manager, the representative must appoint one within three months from the date of death or disability. This manager will need to complete training at the expense of the estate or the disabled owner. If a manager is not appointed or if Hydrodog believes the business is not being managed properly, Hydrodog has the right, but not the obligation, to appoint a manager.
Funds from the operation of the Hydrodog business during the period managed by Hydrodog's appointed manager will be kept in a separate account. Expenses, including the manager's compensation, costs, and travel, will be charged to this account. Hydrodog can also charge a reasonable management fee, not exceeding $400 per day plus reasonable expenses, in addition to the standard royalty and marketing fund fees. Hydrodog will use commercially reasonable efforts in operating the business but will not be liable for any debts, losses, or obligations incurred during their management.
For franchisees in Washington state, the FDD indicates that Section 15.5 and 15.6 of the Franchise Agreement, which address transfers upon death or disability, are amended to provide the franchisee with six months (or 180 days) to transfer the business. Additionally, Hydrodog is required to deal in good faith pursuant to RCW 19.100.180(1).