On what basis do Hydrodog and its affiliates contribute to the Marketing Fund for HydroDog Businesses they own and operate?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog and its affiliates contribute to the Marketing Fund on the same basis as franchise owners for any HydroDog Business they own and operate. This means that Hydrodog and its affiliates, when operating their own HydroDog Businesses, will contribute a percentage of their gross sales to the Marketing Fund, just as franchisees do. Currently, franchisees contribute 1% of their gross sales each week to the Marketing Fund. Hydrodog retains the right to increase this contribution up to 2% of gross sales with 30 days written notice.

This arrangement ensures that Hydrodog and its affiliates are aligned with the franchisees in supporting the brand's marketing efforts. By contributing to the Marketing Fund on the same basis, Hydrodog demonstrates a commitment to the system's overall success and ensures that its own company-owned operations are also invested in marketing and promotion. This can be seen as a positive aspect for prospective franchisees, as it shows that Hydrodog has "skin in the game" and is not solely reliant on franchisee contributions to fund marketing initiatives.

The Marketing Fund is used for various purposes, including developing advertising materials, engaging in research and development, administering advertising programs, purchasing e-commerce rights, and maintaining websites. While Hydrodog aims to benefit all HydroDog Businesses with the Marketing Fund, there's no guarantee that expenditures in any specific area will be proportionate to the contributions from HydroDog Businesses in that area. Franchisees should be aware that the fund's usage is at Hydrodog's discretion, and the benefits may not be directly proportional to their individual contributions.