Under what conditions can a Hydrodog franchisee acquire a successor franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Other Agreement | Summary |
|---|---|---|
| (a) | Section 2.2 | 10 years |
| Length of the Franchise | ||
| Term | ||
| (b) | Section 3.1 | If you are in good standing, you can acquire a |
| Renewal or extension | successor franchise for an additional 10-year | |
| of the term | term on our then current terms and conditions. | |
| (c) Requirements for franchisee to renew or extend | Sections 3.1, 3.3, & 3.4 | The term "renewal" refers to extending our franchise relationship at the end of your initial term and any other renewal or extension of the initial term. Your successor franchise rights permit you to remain as a Franchise after the initial term of your Franchise Agreement expires. You must give us written notice of your election to acquire a successor franchise; maintain possession of the HydroDog Vehicle, or secure a substitute, and being it into compliance with our then-current standards and specification; sign our then-current franchise agreement, which may be materially different except that the Royalties and Marketing Fund Fees will be the same as the prior franchise agreement; pay our then-current fees except an initial franchise fee; sign a general release; and satisfactorily complete any new training and refresher programs we require. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 36–38)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee in good standing has the option to acquire a successor franchise agreement for an additional 10-year term. However, this renewal is based on Hydrodog's then-current terms and conditions, which may differ from the original agreement.
To obtain a successor franchise, the franchisee must provide written notice to Hydrodog expressing their intent to renew. They must also maintain possession of the HydroDog Vehicle, ensuring it meets Hydrodog's current standards and specifications, or secure a suitable replacement. Additionally, the franchisee is required to sign Hydrodog's then-current franchise agreement, which may contain materially different terms, although the Royalties and Marketing Fund Fees will remain consistent with the prior agreement.
The franchisee must also pay Hydrodog's then-current fees, with the exception of the initial franchise fee, and sign a general release. Furthermore, satisfactory completion of any new training or refresher programs mandated by Hydrodog is a prerequisite for acquiring the successor franchise. These conditions ensure that the franchisee remains compliant with Hydrodog's standards and practices, while also allowing Hydrodog to update its franchise agreement as needed.