Has the financial information presented in Item 19 for Hydrodog been audited?

According to Hydrodog's 2025 Franchise Disclosure Document, the financial performance representation in Item 19 has not been audited. Specifically, explanatory note 4 in Item 19 states that "The information in this Item 19 is not audited." This means that the figures for gross sales and tips collected, as well as the average, high, low, and median sales figures, have not been verified by an independent accounting firm. Prospective franchisees should be aware that these numbers are based on data reported by franchisees, and Hydrodog has not independently confirmed their accuracy.

Given that the financial data is unaudited, it is crucial for potential Hydrodog franchisees to conduct their own due diligence. Hydrodog states that written substantiation of the data used in preparing this information will be provided upon reasonable request. This suggests that while the data hasn't been formally audited, some supporting documentation exists. A prudent approach would involve requesting and carefully reviewing this substantiation, consulting with a financial advisor, and possibly contacting existing franchisees to verify the information presented.

The lack of audited financial statements in Item 19 is not uncommon in the franchise industry, particularly for smaller or newer franchise systems. However, it places a greater burden on the prospective franchisee to validate the financial claims made by the franchisor. While Hydrodog provides some financial data, the disclaimer that "Your individual results may differ. There is no assurance that you'll sell or earn as much" underscores the inherent risk and variability in franchise performance.

In addition to the general disclaimer, Hydrodog also clarifies that they do not make any other financial performance representations about a franchisee's future financial performance or the past financial performance of Company-owned or franchised outlets, and they do not authorize their employees or representatives to make any such representations whether orally or in writing. If a potential franchisee receives any other financial performance or projections of their future income, they should report it to Hydrodog's management, the Federal Trade Commission, and the appropriate state regulatory agency.