Under what conditions can Hydrodog terminate the franchise agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the franchise agreement can be terminated by Hydrodog if certain conditions are met. Subject to applicable state law and any required notice and cure periods mandated by state franchise laws, Hydrodog can terminate the agreement effective upon delivery of written notice of termination to the franchisee. These conditions include material misrepresentation or omission by the franchisee (or any of their owners) in connection with the franchise purchase.
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 their personnel fail to successfully complete initial training. Failure to open the HydroDog Business within 30 days after receiving the HydroDog Vehicle is also grounds for termination. Furthermore, non-compliance with customer service or retention programs, or failure to achieve required customer satisfaction index or retention rate results, can lead to termination.
Abandoning the HydroDog Business for five or more consecutive business days without approval or due to unapproved reasons like casualty or government order, surrendering control of the business without prior written consent, or offering or selling unauthorized products without correcting the issue within 24 hours of written notice are also reasons for termination. These terms are typical in franchise agreements, as franchisors need to protect their brand and ensure consistent standards across all locations. However, franchisees should be aware of these conditions and ensure they can meet the obligations to avoid potential termination.
It is important to note that the FDD also states that the franchisor's ability to terminate the Franchise Agreement is subject to state law. In Washington state, RCW 19.100.180 may supersede the franchise agreement in the area of termination.