What is the administrative fee charged by Hydrodog for procuring insurance on behalf of a franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
dify or obtain new software that we or our affiliates license to you, you must pay us, or our designee, our, or our designee's, then-current fees for such software, including any up-front and ongoing fees.
- 6.17 Insurance Reimbursement. Should you, for any reason, not procure and maintain such insurance coverage as required by this Agreement, we shall have the right and authority (without, however, any obligation to do so) to immediately procure su
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee fails to maintain the required insurance coverage, Hydrodog has the right to procure the insurance. If Hydrodog chooses to do so, the franchisee will be charged for the cost of the insurance, along with a $500 administrative fee to cover Hydrodog's expenses and efforts in obtaining the insurance. This total amount is payable immediately upon notice from Hydrodog.
This policy ensures that all Hydrodog locations maintain adequate insurance coverage, protecting both the franchisee and the franchisor from potential liabilities. However, it also means that franchisees must ensure they consistently maintain their insurance coverage to avoid incurring this additional $500 administrative fee. This fee is in addition to the cost of the insurance itself, making it a potentially significant expense for franchisees who fail to manage their insurance requirements properly.
For a prospective Hydrodog franchisee, this highlights the importance of adhering to the franchise agreement's insurance requirements. Failing to do so not only exposes the franchisee to risk but also results in an additional, avoidable expense. Franchisees should ensure they understand the required insurance coverage and maintain it diligently to avoid Hydrodog stepping in and charging the administrative fee.