What is the transfer fee required by Hydrodog when selling a territory?

According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee who sells their territory is subject to a transfer fee. Specifically, the FDD states that the transfer fee is $20,000 per territory sold. However, this fee is subject to state law, meaning it could potentially vary depending on the specific regulations in the franchisee's state.

In practical terms, this means that if a Hydrodog franchisee decides to sell their franchise to another party, they must pay Hydrodog $20,000 for each territory included in the sale. This fee is in addition to any other costs associated with the sale, such as broker commissions or legal fees. It's important for prospective franchisees to factor this transfer fee into their financial planning, as it can significantly impact the profitability of selling their franchise.

It is also important to note that the payment of the transfer fee is only one of several conditions that must be met for Hydrodog to approve the transfer. Other conditions include ensuring the transferee meets Hydrodog's standards for business experience and financial resources, that all outstanding payments to Hydrodog are settled, and that the transferee agrees to complete Hydrodog's training program and sign the current franchise agreement. The franchisor must also approve the terms of the transfer and the franchisee must sign a general release and non-compete agreement.

Therefore, while the transfer fee is a significant consideration, it is only one part of the overall process of selling a Hydrodog franchise. Franchisees should carefully review all the conditions outlined in the Franchise Agreement and consult with legal and financial advisors to ensure a smooth and compliant transfer process.