What is the administrative fee charged by Hydrodog if they obtain insurance for a franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Insurance | Reimbursement of our costs plus a $500 administrative fee | On demand | We may (but are not required to) obtain insurance coverage for your HydroDog Business if you do not do so. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee does not obtain their own insurance, Hydrodog may obtain insurance coverage for the Hydrodog business, though they are not required to do so. If Hydrodog does obtain insurance coverage for the franchisee, the franchisee must reimburse Hydrodog for the cost of the insurance, and also pay Hydrodog a $500 administrative fee. This fee is due on demand.
This means that if a Hydrodog franchisee fails to secure their own insurance coverage, Hydrodog has the option to step in and obtain coverage on their behalf. However, this comes at a cost: the franchisee will not only have to reimburse Hydrodog for the actual insurance premiums paid, but also pay an additional $500 administrative fee to Hydrodog.
It is important for prospective Hydrodog franchisees to understand this policy, as failing to maintain adequate insurance could result in Hydrodog obtaining coverage and charging the $500 administrative fee on top of the reimbursement for the insurance costs. Franchisees should prioritize securing their own insurance to maintain control over coverage and costs, and to avoid the administrative fee charged by Hydrodog.