According to the Hydrodog FDD, where can I find information on taxes?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.6 Compliance with Laws and Good Business Practices.
You are required to secure and maintain in force and in your name all necessary insurance, licenses, permits, and certificates relating to the operation of your HydroDog Business.
You will operate your HydroDog Business in full compliance with all applicable laws, ordinances and regulations, including, without limitation, all government regulations relating to occupational hazards and health, construction warranties, worker's compensation insurance, immigration, unemployment insurance, construction permitting, workplace safety, and withholding and payment of federal and state income taxes, social security taxes and sales taxes.
- 11.9 Trade Accounts and Taxes. You agree to maintain your trade accounts in a current status and seek to resolve any disputes with trade suppliers promptly, and to keep us informed of any significant disputes that may affect your HydroDog Business. You agree to timely pay all taxes incurred in connection with your HydroDog Business's operations. If you fail to maintain your trade accounts in a current status, timely pay such taxes or any other amounts owing to any third parties or perform any nonmonetary obligations to third parties, we may, but are not required to, pay any and all such amounts and perform such obligations on your behalf, and you shall indemnify us for any such payments or actions taken. If we elect to do so, then you agree to reimburse us for such amounts. You agree to repay us immediately upon receipt of our invoice. We may also set-off the amount of any such reimbursement obligations against all amounts which we may owe you.
14.2 Our Right to Audit. We have the right at any time during your business hours, and with three (3) days prior notice to you, to inspect and audit, or cause to be inspected and audited, your (if you are a Business Entity) and your HydroDog Business's business, bookkeeping and accounting records, sales and income tax records and returns and other records. You agree to cooperate fully with our representatives and independent accountants we hire to conduct any such inspection or audit. If our inspection or audit is made necessary by your failure to furnish reports, supporting records or other information we require, or to furnish such items on a timely basis, or if the information is not accurate (i.e., your Gross Sales are understated by two percent (2%) or more), you agree to reimburse us for the cost of such inspection or audit, including, without limitation, the charges of attorneys and independent accountants and the travel expenses, room and board and compensation of our employees. You also must pay us any shortfall in the amounts you owe us, including late fees and interest, within 10 days of our notice. The foregoing remedies are in addition to our other remedies and rights under this Agreement and applicable law.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, several sections provide information regarding taxes. Item 5.6 discusses the franchisee's responsibility to comply with all applicable laws, ordinances, and regulations, including government regulations related to withholding and payment of federal and state income taxes, social security taxes, and sales taxes. This section emphasizes the franchisee's obligation to operate the Hydrodog business in full compliance with these tax laws.
Item 11.9 further elaborates on taxes, stating that franchisees must timely pay all taxes incurred in connection with their Hydrodog business operations. If a franchisee fails to pay these taxes, Hydrodog has the option, but not the obligation, to pay the amounts on the franchisee's behalf. If Hydrodog makes such payments, the franchisee is required to indemnify Hydrodog for those payments and reimburse them immediately upon receiving an invoice. Hydrodog can also offset the reimbursement amount against any amounts it may owe the franchisee.
Finally, Item 14.2 grants Hydrodog the right to inspect and audit the franchisee's sales and income tax records and returns with three days' notice. If the audit is required because the franchisee failed to furnish reports or if the information provided is inaccurate (i.e., understated gross sales by 2% or more), the franchisee must reimburse Hydrodog for the cost of the inspection or audit, including attorney and accountant fees, travel expenses, and employee compensation. The franchisee must also pay any shortfall in amounts owed, including late fees and interest, within 10 days of notice.