Who controls the Hydrodog Marketing Fund and decisions regarding its use?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog maintains sole control over the Marketing Fund and all decisions regarding its use and distribution. The Marketing Fund is supported by a fee of 2% of Gross Sales, which franchisees must pay at the same time and in the same manner as the Royalty fee. This fund is designated for system-wide national or regional marketing activities, as determined by Hydrodog, to promote and build the HydroDog brand.

This means that while franchisees contribute to the Marketing Fund, they do not have direct input into how the funds are spent. Hydrodog has the authority to decide which marketing activities will be pursued, whether they are national or regional in scope. This arrangement is common in franchising, where the franchisor manages marketing efforts to ensure brand consistency and maximize impact.

For a prospective Hydrodog franchisee, it is important to understand that the 2% Marketing Fund Fee is mandatory and that the franchisor has complete discretion over how these funds are used. While franchisees benefit from the brand-building efforts, they relinquish control over the specific marketing strategies and campaigns implemented. Franchisees may want to inquire about Hydrodog's marketing strategy and how the fund has been used in the past to assess whether they agree with the franchisor's approach.