When transferring a Hydrodog franchise, who is responsible for paying any commissions or other fees due to a third-party broker?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) if applicable, you have paid to us, or the respective third-party broker, any and all commissions or other fees due;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee uses a third-party broker to facilitate the transfer of their franchise, the responsibility for paying any commissions or fees due to that broker falls on the franchisee.
Specifically, before Hydrodog will approve the transfer, the franchisee must ensure that all outstanding royalties, marketing fund fees, and other debts to Hydrodog and its creditors are settled. Additionally, the franchisee must pay Hydrodog a transfer fee of $20,000 per territory being sold, subject to state law.
Critically, the franchisee is also responsible for paying any commissions or fees owed to a third-party broker, if one was involved in the transaction. This means that prospective franchisees need to factor in these potential brokerage costs when considering the financial implications of selling their Hydrodog franchise.