Under what circumstances may a Hydrodog franchisee appoint a General Manager?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.13 Management. If you are an entity, you are required to complete and update, as necessary, the statement of ownership attached hereto as Attachment B throughout the term of this Agreement, and to provide us with a copy of any such updates within thirty (30) days of making them. Your HydroDog Business shall be managed by you, or if you are an entity, by one of your shareholders, partners, or members who is a natural person, holding at least a ten percent (10%) interest in the franchisee entity, and who is designated in writing to us as the person to make all decisions for the franchisee entity and to be principally responsible for communicating with us about your HydroDog Business ("Designated Owner"). Under certain circumstances we may allow you to appoint a designated manager ("General Manager") to run the day-to-day operations of your Franchised Business; the General Manager need not have an ownership interest in the franchisee entity. In addition, if you are an entity, all persons who own twenty percent (20%) or more of the beneficial ownership interests in the entity and each such person's respective spouse shall personally and unconditionally guaranty franchise owner's performance under this Agreement by signing the Owners Agreement attached hereto as Attachment D. The Designated Owner shall have the authority to speak for and bind the franchise owner in all matters pertaining to this Agreement, and all matters relating to your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee who operates as an entity (e.g., a corporation or LLC) is generally required to have a Designated Owner who holds at least a 10% interest in the franchise and is responsible for making decisions and communicating with Hydrodog. However, under certain circumstances, Hydrodog may allow a franchisee to appoint a General Manager to oversee the day-to-day operations of the franchised business.
The FDD specifies that the General Manager does not need to have an ownership interest in the franchisee entity. This provides flexibility for franchisees who may not be able or willing to manage the business themselves. However, Hydrodog retains the right to approve the General Manager.
This arrangement benefits both Hydrodog and the franchisee. Hydrodog maintains control over the management of its franchises by requiring approval of the General Manager, while the franchisee gains the ability to delegate daily operations to a qualified individual. Prospective franchisees should inquire with Hydrodog about the specific conditions and qualifications required for appointing a General Manager to ensure they meet the franchisor's standards.