Under what conditions can Hydrodog terminate the Franchise Agreement if a franchisee does not open the required number of mobile pet grooming vehicles?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You are required to meet the Territory Development Schedule, which requires you to maintain one (1) HydroDog Vehicle for every 100,000 population (or fraction thereof) in your Territory. You must add each required additional HydroDog Vehicle within six (6) months after commencing operations or within six (6) months of any population increase that triggers the requirement for an additional vehicle. Your failure to achieve either the required customer satisfaction index score results or the required customer retention rate results is grounds either for us to require your mandatory attendance at any remedial training program that we specify or for us to allow other franchisees to operate in your Territory, or for us to terminate the Franchise Agreement. In addition, if you do not open the number of mobile pet grooming vehicles as required by the Territory Development Schedule, we may terminate your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 30–32)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog can terminate the Franchise Agreement if a franchisee fails to meet the Territory Development Schedule. The Territory Development Schedule mandates that franchisees maintain one Hydrodog vehicle for every 100,000 in population (or any fraction thereof) within their designated territory.
Franchisees are required to add each additional Hydrodog vehicle within six months of starting operations or within six months of any population increase that necessitates an additional vehicle. This requirement ensures that the franchisee's capacity keeps pace with the territory's demand.
In addition to potential termination for failing to meet the vehicle requirements, Hydrodog may also require mandatory attendance at a remedial training program or allow other franchisees to operate in the territory if the franchisee fails to achieve the required customer satisfaction index score or customer retention rate results. Therefore, franchisees must meet specific operational and developmental benchmarks to maintain their franchise agreement and territorial exclusivity.