How does Hydrodog define 'Tips' in the context of groomer compensation?

According to Hydrodog's 2025 Franchise Disclosure Document, 'Tips' are defined as voluntary monetary gratuities provided by the customer directly to the groomer for services rendered. These payments are at the customer's discretion and serve as a token of appreciation for the groomer's service quality and professionalism.

This definition is important for prospective Hydrodog franchisees as it clarifies that tips are separate from the revenue generated by the business itself ('Gross Sales'). Tips go directly to the groomer as an acknowledgement of their service. This distinction helps in understanding the potential income streams for both the franchisee (through gross sales) and the groomer (through tips).

The FDD also includes data on tips collected by franchisees between January 1, 2024 and December 31, 2024. For example, A&M Pups, LLC collected $30,542.33 in tips, while Clinesmith Company, LLC collected $66,372.34. Some franchisees did not disclose their tip amounts. This data, while not a guarantee of future performance, can give prospective franchisees an idea of the potential for groomers to earn tips in addition to their regular compensation.

It is important to note that Hydrodog strongly suggests that prospective franchisees conduct an independent investigation and consult with their attorney and financial advisor before signing any agreement. The financial performance information provided in the FDD is not audited, and individual results may differ. There is no assurance that a franchisee will sell or earn as much as the amounts presented.