Is there an initial franchise fee required for Hydrodog franchise renewal?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD 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; sign a general release; and satisfactorily complete any new training and refresher programs we require. |
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, franchisees are not required to pay an initial franchise fee when renewing their franchise agreement. The FDD states that if a franchisee is in good standing, they can acquire a successor franchise for an additional 10-year term based on Hydrodog's current terms and conditions.
To renew the franchise, the 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 then-current standards and specifications. Additionally, franchisees must sign the then-current franchise agreement, which may differ materially from the original, although the Royalties and Marketing Fund Fees will remain the same.
Other requirements for renewal include signing a general release and satisfactorily completing any new training and refresher programs that Hydrodog requires. The absence of an initial franchise fee for renewal can be a significant benefit for existing franchisees, reducing the financial burden of continuing the franchise relationship. However, franchisees should be prepared for potential changes in the franchise agreement and the need to update their vehicle and undergo further training.