What is the annual interest rate charged by Hydrodog for financing the initial franchise fee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Parameter | Initial Franchise Fee and for additional territories |
|---|---|
| Item Financed (1) | Up to 50% of the Initial Franchise Fee |
| Source of Financing | Us |
| Down Payment | $20,000 |
| Amount Financed | Up to 50% |
| Interest Rate/Finance Charge | 8% per annum (including finance charges) |
| Period of Repayment | 60 months |
| Security Required | Personal Guarantee |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt (2) | If the franchisee is an entity, its owners must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal | Waiver of right to a jury trial; homestead and other exemptions; |
| Rights | waiver of presentment, demand, protest, notice of dishonor. |
| Intent to Sell (3) | There is no intent to sell, assign or factor the debt to a third party. |
| Consideration for placement of | None |
| financing (4) |
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may offer financing for up to 50% of the initial franchise fee. The interest rate charged is 8% per annum, which includes finance charges. The repayment period for this financing is 60 months.
A down payment of $20,000 is required. Hydrodog requires a personal guarantee as security. If the franchisee is an entity, the owners must personally guarantee the debt. There is no prepayment penalty.
Upon default, the franchisee is obligated to pay the entire amount due immediately. The franchisee is also responsible for Hydrodog's court costs and attorney fees incurred in collecting the debt, and the franchise may be terminated. The agreement includes a waiver of the right to a jury trial, homestead and other exemptions, and waiver of presentment, demand, protest, notice of dishonor. Hydrodog does not intend to sell, assign, or factor the debt to a third party, and receives no consideration for placement of financing.