Can a Hydrodog business be required to be a member of more than one advertising cooperative?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, in our discretion, create a regional advertising cooperative ("Cooperative") in any area where two or more HydroDog Businesses are located, and establish the rules and regulations therefor.
Immediately upon our request, you must become a member of the Cooperative for the area in which your HydroDog Business is located.
In no event may the HydroDog Business be required to be a member of more than one Cooperative.
The Cooperative must be governed in the manner we prescribe.
You shall make contributions to the Cooperative in such amounts at the times and in the manner as determined by majority vote of the Cooperative members, subject to our approval.
Any amounts that you contribute to a Cooperative will count toward your Local Advertising requirement, but if the amount you contribute to a Cooperative is less than the amount you must spend on Local Advertising you must spend the difference locally.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a Hydrodog business will not be required to be a member of more than one advertising cooperative. Hydrodog, at its discretion, may create a regional advertising cooperative in any area where two or more HydroDog Businesses are located. If Hydrodog establishes a cooperative in the area where a franchisee's HydroDog Business is located, the franchisee must become a member of that cooperative upon Hydrodog's request.
The advertising cooperative must be governed in a manner prescribed by Hydrodog. Franchisees are required to make contributions to the cooperative in amounts, at times, and in a manner determined by a majority vote of the cooperative members, but this is subject to Hydrodog's approval. Any amounts contributed to a cooperative will count toward the franchisee's local advertising requirement. However, if the contribution to the cooperative is less than the required local advertising spend, the franchisee must spend the difference locally.
This arrangement ensures that Hydrodog franchisees participate in regional advertising efforts if Hydrodog deems it necessary, while also limiting the financial burden to a single cooperative. Franchisees retain some control over the amount and timing of contributions through the cooperative's voting process, although Hydrodog retains ultimate approval. This setup allows for both regional marketing coordination and individual local advertising efforts, providing a balance between brand consistency and local market adaptation.