For Hydrodog franchise renewal, what monetary obligations must be current?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ubstitute a HydroDog Vehicle we approve, develop such HydroDog Vehicle in compliance with specifications and standards then applicable for the HydroDog Businesses;
- (e) at the time the renewal option is exercised and at the time such renewal commences, all monetary obligations to us and any affiliate of ours and any of your suppliers must be current and must have been current at all times during the preceding twelve (12) months;
- (f) you execute a general release running in favor of us, our affiliates and our respective officers, directors and shareholders releasing all claims against us, our officers, directors and shareholders; and
- (g) you pay to us a non-refundable renewal fee equal to twenty thousand dollars ($20,000) per Territory, which fee sha
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, to renew a franchise for an additional ten-year period, a franchisee must be current in all monetary obligations to Hydrodog, its affiliates, and their suppliers, both at the time of exercising the renewal option and when the renewal term commences. Furthermore, these obligations must have been current at all times during the twelve months preceding the renewal.
This requirement means that a Hydrodog franchisee cannot have any outstanding payments related to royalties, marketing fund fees (which are 1% of gross sales, potentially increasing to 2%), technology fees ($150 per month plus $99 per month for each HydroDog Vehicle), scheduling fees, or purchases from approved suppliers. Any arrears in these payments could jeopardize the franchisee's ability to renew their franchise agreement.
In addition to maintaining current payments, the franchisee must also execute a general release in favor of Hydrodog and pay a non-refundable renewal fee of $20,000 per territory upon submitting the renewal notice. Meeting all these financial and legal obligations is crucial for a Hydrodog franchisee to secure their continued operation under the Hydrodog brand.