Under what circumstances can Hydrodog appoint a manager for the Hydrodog business after the franchisee's death or disability?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
utes a breach of this Agreement. For purposes of this Agreement, the term "disability" means a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent you or an owner of a controlling interest in you from managing and operating your HydroDog Business.
- 15.6 Operation Upon Death or Disability. If, upon your death or disability or the death or disability of the owner of a controlling interest in you, your HydroDog Business is not being managed by a trained Manager, your or such owner's executor, administrator, conservator, guardian or other personal representative must, within a reasonable time not to exceed three (3) months from the date of death or disability, appoint a Manager to operate your HydroDog Business. Such Manager will be required to complete training at your expense. Pending the appointment of a Manager as provided above or if, in our judgment, your HydroDog Business is not being managed properly any time after your death or disability or after the death or disability of the owner of a controlling interest in you, we have the right, but not the obligation, to appoint a Manager for your HydroDog Business. All funds from the operation of your HydroDog Business during the management by our appointed Manager will be kept in a separate account, and all expenses of your HydroDog Business, including compensation, other costs and travel and living expenses of our Manager, will be charged to this account. We also have the right to charge a reasonable management fee (in addition to the Royalty and Marketing Fund Fees and contributions payable under this Agreement) during the period that our appointed Manager manages your HydroDog Business, which will not exceed four hundred dollars ($400) per day plus our reasonable expenses. Operation of your HydroDog Business during any such period will be on your behalf, provided that we shall use commerc
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has specific rights regarding the management of a franchise in the event of the franchisee's death or disability. If the Hydrodog business is not being managed by a trained manager after the death or disability of the franchisee (or the owner of a controlling interest), the executor or personal representative has three months to appoint a manager to operate the business. This manager will need to complete training, which will be at the expense of the franchisee's estate.
However, if a manager is not appointed within that three-month timeframe, or if Hydrodog believes the business is not being managed properly after the death or disability, Hydrodog has the right, but not the obligation, to appoint a manager for the Hydrodog business.
If Hydrodog does appoint a manager, all funds from the business's operation will be kept in a separate account. Expenses, including the manager's compensation, costs, and travel, will be charged to this account. Hydrodog can also charge a reasonable management fee, up to $400 per day plus reasonable expenses, in addition to the standard royalty and marketing fund fees. While Hydrodog will use commercially reasonable efforts in operating the business, they will not be liable for any debts, losses, or obligations incurred during their management.