Does the 'Additional Funds' estimate for a Hydrodog franchise include personal expenses?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Additional Funds is an estimate of the funds needed to cover business (not personal) expenses during the first 3 months of operation of your HydroDog Business. You will need capital to support on-going costs of your business. New businesses (franchised or not) often have larger expenses than revenues. As with most businesses, your costs will depend on factors such as how much you follow our recommended systems, your technical, marketing and general business skills, local economic conditions, the local market for your business, competition, local cost factors, location and the sales levels achieved by you. This is only an estimate, and we cannot guarantee that the amounts specified will be adequate. You may need substantial additional funds during the 3 months of initial operation or afterwards. The 3 month period from beginning business covers the time by which most Franchisees are fully in operation but does not mean that you will have reached "breakeven" or any other financial position by that time. In addition, the estimates presented relate only to costs associated with your HydroDog Business and do not cover any personal, "living" or other expenses you may have. We've based this estimate of Additional Funds on our experience and that of our predecessor.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 16–18)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the 'Additional Funds' estimate does not include personal expenses. The FDD specifies that the additional funds are an estimate to cover business expenses during the first three months of operation. These funds are meant to support the ongoing costs of the business, acknowledging that new businesses often face higher expenses than revenues.
The document explicitly states that the estimates provided relate only to costs associated with the Hydrodog business and do not cover personal, living, or other personal expenses. Hydrodog based this estimate on their experience and that of their predecessor. The estimated range for these additional funds is between $0 and $50,000 for the first three months of operation.
Prospective franchisees should be aware that this estimate is not a guarantee, and they may need substantial additional funds during the initial three months or afterward. The actual costs will depend on various factors, including adherence to Hydrodog's recommended systems, the franchisee's skills, local economic conditions, and sales levels achieved. It is crucial for potential franchisees to carefully review these figures with a business advisor to assess their financial capabilities and plan accordingly, ensuring they have sufficient capital to cover both business and personal expenses during the startup phase.