Under what conditions can the Hydrodog franchise agreement be terminated before it expires?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
16. TERMINATION OF AGREEMENT
- 16.1 By You. If you and your owners are in compliance with this Agreement and we materially fail to comply with this Agreement and do not correct or commence correction of such failure within sixty (60) days after written notice of such material failure is delivered to us, you may terminate this Agreement effective 60 days after delivery to us of written notice of termination. Your termination of this Agreement for any other reason or without such notice will be deemed a termination without cause, and is a breach of this Agreement by you.
- 16.2 By Us. Subject to applicable state law and any required notice and cure periods mandated by state franchise laws, we have the right to terminate this Agreement, effective upon delivery of written notice of termination to you, if:
- (a) you (or any of your owners) have made any material misrepresentation or omission in connection with your purchase of the Franchise;
- (b) you fail to meet or exceed the Territory Development Schedule for six (6) consecutive months;
- (c) you or the required number of your personnel fail to successfully complete initial training to our satisfaction or you have not fulfilled all of the conditions for management of your HydroDog Business described in this Agreement;
- (d) you fail to open your HydroDog Business within thirty (30) days after receipt of your HydroDog Vehicle;
- (e) you fail to comply in all respects with the requirements of any customer service program or customer retention program, or you fail to achieve customer satisfaction index results we required for any customer service program, or you fail to achieve customer retention rate results we require for any customer retention program;
- (f) you abandon or fail to actively operate your HydroDog Business for five (5) or more consecutive business days, unless your HydroDog Business has been closed for a purpose we have approved or because of casualty or government order;
- (g) you surrender or transfer control of the operation of your HydroDog Business without our prior written consent;
- (h) you offer or sell any unauthorized product and fail to provide satisfactory evidence that the unauthorized product is no longer being offered for sale within twenty-four (24) hours of written notice;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement, which has an initial term of ten years, can be terminated before it expires under certain conditions. A franchisee can terminate the agreement if they are in compliance with the agreement and Hydrodog materially fails to comply with the agreement, and does not correct or begin to correct the failure within 60 days after written notice. The franchisee's termination will be effective 60 days after they deliver a written notice of termination to Hydrodog. If the franchisee terminates the agreement for any other reason or without proper notice, it will be considered a termination without cause and a breach of the agreement.
Hydrodog has the right to terminate the agreement if the franchisee or any of their owners have made any material misrepresentation or omission in connection with the purchase of the franchise. Hydrodog can also terminate the agreement if the franchisee fails to meet or exceed the Territory Development Schedule for six consecutive months, or if the franchisee or the required number of personnel fail to successfully complete initial training. Failure to open the HydroDog Business within 30 days after receiving the HydroDog Vehicle can also result in termination.
Additional grounds for termination by Hydrodog include failure to comply with customer service or retention program requirements, abandoning or failing to actively operate the HydroDog Business for five or more consecutive business days without approval, or surrendering control of the business without written consent. Offering or selling any unauthorized product and failing to cease such sales within 24 hours of written notice can also lead to termination. It is important to note that Hydrodog's ability to terminate the Franchise Agreement is subject to state law, which may provide additional protections or requirements for franchisees.