Under what conditions can Hydrodog terminate the franchise agreement for non-compliance with System Standards?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
damental status and rights under this Agreement. We agree to give you at least ninety (90) days to comply with Capital Modifications we require. You are obligated to comply with all modifications to System Standards, including Capital Modifications, within the time period we specify. Your failure to comply with any System Standards or Capital Modifications within the specified time period will result in: (a) a non-compliance fee as stated in Section 6.16 (Non-Compliance Fee); (b) mandatory remedial training at your expense; (c) suspension of your rights under this Agreement until compliance is achieved; and/or (d) termination of this Agreement, as we determine in our sole discretion.
- 11.4 Interior and Exterior Upkeep. You agree, at all times, to maintain the HydroDog Vehicle's interior and exterior and the surrounding area in the highest degree of cleanliness, orderliness and sanitation and comply with the requirements regarding the upkeep of the HydroDog Vehicle established in the Manuals and by federal, state and local laws.
- 11.5 Hours of Operation. You agree to operate your HydroDog Business during the hours and on the days prescribed by us in the Manuals or otherwise approved in advance in writing by us.
- 11.6 Customer Service Programs and Customer Retention Programs. You acknowledge and agree that you must participate in any customer service program or customer retention program which we may establish from time to time.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog can terminate the franchise agreement if a franchisee fails to comply with System Standards or Capital Modifications within a specified time period. This failure can also result in a non-compliance fee, mandatory remedial training at the franchisee's expense, or suspension of the franchisee's rights under the agreement. System Standards are defined as the specifications, standards, operating procedures, and rules prescribed in the Manuals for operating a HydroDog Business. These standards can be modified periodically by Hydrodog, potentially requiring additional capital investment or higher operating costs for the franchisee.
Specifically, if Hydrodog identifies deficiencies during an inspection of the HydroDog Business or Vehicle related to appearance, equipment, signs, or decor, they will notify the franchisee in writing. The franchisee then has thirty days to correct these deficiencies. Failure to correct the deficiencies within this timeframe subjects the franchisee to a non-compliance fee for each uncorrected area. Hydrodog also reserves the right to correct the deficiencies themselves at the franchisee's expense to ensure compliance.
Furthermore, if a Hydrodog franchisee fails three inspections of their HydroDog Business within a 12-month period, Hydrodog has the right to terminate the agreement at its sole discretion. This highlights the importance of maintaining Hydrodog's standards to avoid potential termination and financial repercussions.