What is the definition of 'Marketing Fund Fees' for Hydrodog franchisees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We have established a system-wide development, marketing and promotional fund (the "Marketing Fund") for the benefit of HydroDog franchisees.
You shall participate in the Marketing Fund and contribute one percent (1%) of your Gross Sales each week to the Marketing Fund (the "Marketing Fund Fees**"**).
We reserve the right to increase your Marketing Fund Fee to up to two percent (2%) of Gross Sales upon thirty (30) days' written notice to you.
You must pay the Marketing Fund Fees in the same manner as the Royalty due under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Marketing Fund Fees are defined as a contribution of one percent (1%) of the franchisee's Gross Sales each week to the Marketing Fund. Hydrodog has established this fund for system-wide development, marketing, and promotion to benefit all Hydrodog franchisees.
The FDD also states that Hydrodog reserves the right to increase the Marketing Fund Fee up to a maximum of two percent (2%) of Gross Sales. Hydrodog must provide franchisees with thirty (30) days' written notice before implementing such an increase. The franchisee is required to pay the Marketing Fund Fees in the same manner as the Royalty fees.
This Marketing Fund is intended to maximize recognition of the Hydrodog marks and patronage of the Hydrodog Businesses. While Hydrodog aims to develop advertising and marketing that benefits all franchisees, there is no guarantee that expenditures in any specific geographic area will be proportionate to the contributions from Hydrodog Businesses in that area, or that any particular Hydrodog Business will directly benefit in proportion to its contribution.