Do contributions to the Hydrodog advertising cooperative count toward the local advertising requirement?

According to Hydrodog's 2025 Franchise Disclosure Document, contributions to a regional advertising cooperative can count toward the local advertising requirement. Hydrodog, at its discretion, may create a regional advertising cooperative where two or more HydroDog Businesses are located. Franchisees are required to join the cooperative if Hydrodog requests it. The cooperative is governed as Hydrodog prescribes, and franchisees must contribute amounts determined by a majority vote of the cooperative members, subject to Hydrodog's approval.

Any contributions a franchisee makes to the cooperative will count toward their local advertising requirement. However, if the required local advertising spend exceeds the cooperative contribution, the franchisee must spend the difference locally. This means that while participation in the cooperative can help fulfill the local advertising requirement, it might not cover the entire obligation, and franchisees need to be prepared to supplement the cooperative contributions with additional local advertising expenses.

This setup provides a framework for regional advertising efforts while ensuring franchisees meet a minimum level of local advertising. It balances the benefits of coordinated advertising through the cooperative with the flexibility for franchisees to address specific local market conditions. Franchisees should be aware of the potential need to budget for additional local advertising expenses beyond their cooperative contributions.