Can Hydrodog transfer or assign the Franchise Agreement to another entity without the franchisee's consent?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.1 By Us. We have the exclusive right to transfer or assign this Agreement or any part of our rights or obligations under this Agreement to any person or legal entity, without your prior consent. You agree that we will have no liability after the effective date of the transfer or assignment for the performance of any obligations under this Agreement, unless otherwise stipulated in the terms of the transfer or assignment. You acknowledge that we can sell our assets; sell securities in a public offering or in a private placement; merge with, acquire, or be acquired by another company; or undertake a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring, without restriction and without affecting your obligations under this Agreement.
- 15.2 By You. You understand and acknowledge that the rights and duties created by this Agreement are personal to you (or, if you are a Business Entity, to your owners) and that we have granted the Franchise to you in reliance upon our perceptions of your (or your owners') individual or collective character, skill, aptitude, attitude, business ability and financial capacity. Accordingly, neither this Agreement (or any interest in it) nor any ownership or other interest that would reduce your voting or equity interest to less than 51% in you or your HydroDog Business may be transferred without our prior written approval. Any transfer without such approval constitutes a breach of this Agreement and is void and of no effect. As used in this Agreement, the term "transfer" includes your (or your owners') voluntary,
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to transfer or assign the Franchise Agreement to another entity without the franchisee's prior consent. Hydrodog states that they will not have any liability after the effective date of the transfer or assignment for the performance of any obligations under the agreement, unless otherwise stipulated in the terms of the transfer or assignment.
This means that Hydrodog can sell the company, its assets, or merge with another company without impacting the franchisee's obligations under the agreement. The franchisee's agreement remains in effect even if Hydrodog changes ownership or undergoes financial restructuring. This is a standard practice in franchising, as it allows the franchisor to grow and evolve the brand without being unduly restricted by individual franchise agreements.
However, the franchisee is not allowed to transfer the agreement without Hydrodog's prior written approval. Hydrodog states that the rights and duties created by the agreement are personal to the franchisee (or their owners) and that the franchise was granted in reliance on the franchisee's individual or collective character, skill, aptitude, attitude, business ability, and financial capacity. Any transfer without Hydrodog's approval constitutes a breach of the agreement and is void.