What is the typical initial term length for a Hydrodog franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Initial Term. Unless terminated sooner as provided in this Agreement, the initial term of this Agreement (the "Initial Term") expires ten (10) years from the Effective Date. Your rights to seek a renewal franchise agreement for an additional term are set forth in Section 3. This Agreement may be terminated before it expires only in accordance with this Agreement.
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);
(c) you are able to maintain possession of the HydroDog Vehicle, and agree to add or replace the HydroDog Vehicle, equipment and signs and otherwise modify the HydroDog Business as we require to bring it into compliance with specifications and standards then applicable for the HydroDog Businesses;
For the purposes of this Agreement, you will be considered to have irrevocably chosen not to renew the franchise (and the option to do so will consequently terminate) if you fail to sign and return to us our current standard franchise agreement and other supplementary documents required by us for a renewal franchise within thirty (30) days after we have delivered them to you.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the initial term for a Hydrodog franchise agreement is ten years from the effective date of the agreement. This means that a franchisee will typically operate their Hydrodog business under the franchise agreement for a decade, unless the agreement is terminated earlier according to its terms.
Hydrodog offers an option for renewal of the franchise agreement for up to one additional period of ten years. However, this renewal is contingent upon several factors. The franchisee must provide written notice of their intent to renew between six and nine months before the end of the initial term. They also need to be in substantial compliance with the existing agreement, current in all payments, and not in default of any agreements with Hydrodog or its affiliates.
Furthermore, to renew, a franchisee must enter into Hydrodog's then-current franchise agreement, which may contain significantly different terms, including higher fees, different territory rights, and modified operational requirements. The franchisee must also be able to maintain possession of the Hydrodog Vehicle and agree to any required modifications to comply with current standards. If a franchisee fails to sign and return the updated franchise agreement within 30 days of receiving it, they will be considered to have declined the option to renew.