Will variations in the economics and terms and conditions of other Hydrodog franchises be within the discretion and Reasonable Business Judgment of the Franchisor?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
hing contained in this Section will limit your right to rely on statements made in our Franchise Disclosure Document.
- 21.20 No Liability to Others; No Other Beneficiaries. We will not, because of this Agreement or by virtue of any approvals, advice or services provided to you, be liable to any person or legal entity who is not a party to this Agreement. Except as specifically described in this Agreement, no other party has any rights because of this Agreement. The Franchisee acknowledges that other HydroDog franchisees may be granted franchises at different times, different locations, under different economic conditions and in different situations. The Franchisee further acknowledges that the economics and terms and conditions of such other franchises may vary from those contained in this Agreement, but all such variations will be within the discretion and Reasonable Business Judgment of the Franchisor.
- 21.21 Construction. The headings of the sections are for convenience only. If two or more persons are at any time Franchise owners hereunder, whether or not as partners or joint venturers, their obligations and liabilities to us are joint and several. This Agreement may be signed in multiple copies, each of which will be an original. "A or B" means "A" or "B" or both.
21.22 Certain Definitions.
- (a) The term "family member" refers to parents, spouses, offspring and siblings, and the parents and siblings of spouses.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the terms and conditions of other Hydrodog franchises may vary, and these variations will be within the discretion and Reasonable Business Judgment of Hydrodog. This means that Hydrodog has the authority to make decisions regarding the economics and terms of different franchises based on their business judgment. Hydrodog's "Business Judgment" means that they are allowed to exercise their judgment in a manner they deem fit, in their sole and absolute discretion, provided that such decisions are made in good faith and are not arbitrary or capricious.
For a prospective franchisee, this implies that the terms of their franchise agreement may not be identical to those of other franchisees. Factors such as location, economic conditions, and the timing of when the franchise was granted can influence the specific terms. While this provides Hydrodog with flexibility to adapt to different market conditions and individual franchisee situations, it also means that a franchisee may not be able to negotiate for terms identical to those offered to others.
It is important for potential franchisees to understand that Hydrodog has the right to make decisions that could have negative consequences for individual franchisees, as long as those decisions are made in good faith and are not arbitrary. This underscores the importance of carefully reviewing the franchise agreement and understanding the scope of Hydrodog's decision-making authority. Prospective franchisees should seek clarification from Hydrodog regarding the factors that may influence the terms and conditions of their franchise agreement and how these terms might differ from those of other franchisees.