Can Hydrodog designate any geographic area for a regional advertising cooperative?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
(Franchise Agreement, Section 12.9)
Local Advertising Cooperative
We have the right, in our discretion, to designate any geographic area for purposes of establishing a regional advertising and promotional cooperative ("Cooperative"). All franchisees in the designated geographical area must participate in the Cooperative. Cooperative contributions will be credited towards your Local Advertising expenditure, and will not exceed the Local Advertising expenditure unless a majority of the Cooperative's members vote to spend an amount greater than the Local Advertising expenditure on advertising. Each Cooperative will be organized for the exclusive purpose of administering regional advertising programs and developing, subject to our approval, standardized advertising materials for use by the members in local advertising. Each Cooperative must operate from written governing documents which will be made available to franchisees. Each year, every operating cooperative will prepare financial statements which will be made available to franchisees. No promotional or advertising plans or materials may be used by a Cooperative or furnished to its members without our prior approval. All such plans and materials will be submitted to us in accordance with the procedure set forth in Article 12.5 of the Franchise Agreement. We may grant to any franchisee, in our sole discretion, an exemption for any length of time from the requirement of membership in a Cooperative, upon written request of such franchisee stating reasons supporting such exemption. Our decision concerning such request for exemption will be final. We reserve the right to form, change, dissolve, or merge any Cooperative. (Franchise Agreement, Section 12.8)
Advertising Councils
There currently are no franchisee advertising councils or advertising cooperatives that advise us on advertising policies. In our discretion, we reserve the right to establish an advisory council of franchisees that does advise us on advertising policies and other matters. (Franchise Agreement, Section 12.7)
Approval Requirement
All advertising and promotion by you and by any cooperative must be in the type of media and format that we approve, must be conducted in a dignified manner, and must conform to our standards and requirements.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to designate any geographic area for establishing a regional advertising and promotional cooperative. All franchisees within that designated area are required to participate in the cooperative.
The contributions made by franchisees to the Cooperative will be credited toward their local advertising expenditure. However, the cooperative can decide to spend more than the local advertising expenditure if a majority of its members vote in favor. Each cooperative is formed to manage regional advertising programs and create standardized advertising materials, which are subject to Hydrodog's approval, for use by its members in local advertising.
Each Hydrodog cooperative must operate under written governing documents that are accessible to franchisees. The cooperative is required to prepare annual financial statements, which will also be made available to franchisees. Hydrodog retains the right to form, change, dissolve, or merge any cooperative. Additionally, Hydrodog may grant exemptions from cooperative membership to individual franchisees for a specified period, based on a written request from the franchisee.
All advertising and promotional plans or materials must receive Hydrodog's prior approval. Franchisees or the cooperative must submit these materials at least 30 days before their intended use, unless the materials were either prepared by Hydrodog or have been approved within the last 12 months.