Are there any specific requirements regarding payment status for a Hydrodog franchisee to be eligible for renewal?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
sfer. We shall not be liable for any disputes between franchisees regarding customer account transfers or Customer Account Transfer Fees.
3. SUCCESSOR TERMS.
- 3.1 Renewal. Subject to the provisions of this Section, you shall have an option (exercisable only by written notice delivered to us by certified mail or overnight courier with proof of delivery, less than nine (9) months, but more than six (6) months, prior to the end of the initial term of this Agreement) to renew the franchise hereunder for up to one (1) additional period of ten (10) years, if the following conditions are met and provided that we, in our reasonable business judgment, agree to the renewal:
- (a) you have been, throughout the initial term of this Agreement, in substantial compliance, and at the expiration of such initial term are current in all payments and in full compliance and not in default of this Agreement, the lease and all other agreements between you and us or companies associated or affiliated with us;
- (b) you enter into our then-current franchise agreement (which may contain materially different terms, including, without limitation, higher fees, different territory rights, and modified operational requirements) and all other ancillary agreements, instruments and documents then customarily used by us in the granting of franchises (which then-current franchise agreement may materially differ from this Agreement, including a higher rate of fees, different methods of calculating fees due, and different payment methods, which shall be the same as those set out in the franchise agreements being executed at the time of renewal);
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee's payment status is critical for franchise renewal. To be eligible for renewal, the franchisee must be current in all payments and in full compliance with all agreements, including the franchise agreement, the lease, and any other agreements with Hydrodog or its affiliates, throughout the initial term.
Specifically, at both the time of exercising the renewal option and when the renewal term commences, all monetary obligations to Hydrodog, its affiliates, and the franchisee's suppliers must be current. Furthermore, these obligations must have been current at all times during the preceding twelve months. This indicates that Hydrodog places a high priority on consistent and timely payments throughout the franchise term as a condition for renewal.
In addition to maintaining current payments, the franchisee must also execute a general release in favor of Hydrodog, its affiliates, and their respective officers, directors, and shareholders, releasing all claims against them. The franchisee is also required to pay a non-refundable renewal fee of $20,000 per Territory upon submission of the renewal notice. Failure to meet any of these conditions, including maintaining current payment status, gives Hydrodog the right to refuse renewal of the franchise agreement.