Under what conditions can Hydrodog refuse to renew a franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.2 Refusal to Renew Franchise Agreement. We reserve the right to refuse to renew your franchise if you cannot satisfy the requirements in Section 3.1.
We may also refuse to renew your franchise under other circumstances, including, but not limited to, your failure to substantially comply with the terms of this Agreement, your failure to pay amounts owed to us when due, or your failure to remedy any defaults incurred during the initial term of this Agreement, if applicable.
- 3.3 Renewal Under Law.
Even though we may choose not to renew your franchise, certain laws, rules, regulations, statutes, ordinances, or legal orders that are applicable in your jurisdiction at the time may legally obligate us to do so.
If that happens, to the extent it is allowed by the concerned law, rule, regulation, statute, ordinance or order, your renewal term will be subject to the conditions of the franchise agreement we are using for new franchisees at the time the renewal period begins.
If we are not then offering new franchises, your renewal period will be subject to the terms in the franchise agreement that we indicate.
If for any reason that is not allowed, the renewal term will be governed by the terms of this Agreement.
- 3.4 Your Election Not to Renew.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog reserves the right to refuse franchise renewal if a franchisee cannot meet the conditions outlined in Section 3.1 of the agreement. These conditions include being in substantial compliance throughout the initial term, being current in all payments, and not being in default of the agreement, lease, or other agreements with Hydrodog or its affiliates.
Hydrodog may also refuse renewal if the franchisee fails to substantially comply with the terms of the agreement, fails to pay amounts owed when due, or fails to remedy any defaults incurred during the initial term. Additionally, the franchisee must be able to maintain possession of the HydroDog Vehicle and agree to modify the HydroDog Business to comply with current specifications and standards. If unable to maintain possession, the franchisee must secure a substitute vehicle approved by Hydrodog and developed according to their standards.
To renew, the franchisee must execute a general release in favor of Hydrodog, its affiliates, officers, directors, and shareholders, releasing all claims against them. A non-refundable renewal fee of $20,000 per Territory is also required upon submission of the renewal notice. It's important to note that this fee is non-refundable, even if Hydrodog decides not to renew the franchise. Prospective franchisees should be aware of these conditions and ensure they can meet them to secure a renewal of their Hydrodog franchise.
It is important to note that certain laws, rules, regulations, statutes, ordinances, or legal orders that are applicable in the franchisee's jurisdiction at the time may legally obligate Hydrodog to renew the franchise, even if Hydrodog chooses not to. In this case, the renewal term will be subject to the conditions of the franchise agreement Hydrodog is using for new franchisees at the time the renewal period begins.