What must a Hydrodog franchisee do on the Payment Day if electronic funds transfer is required?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.9 Electronic Funds Transfer. We reserve the right to require you to pay all future payments of the Royalties to us by electronic funds transfer.
If we do so, we shall designate the Payment Day for the Royalty payment.
You agree to comply with the procedures we specify in our Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method.
On the Payment Day, you will report to us by telephone, electronic means or in written form, as we direct, your HydroDog Business's true and correct Gross Sales for the immediately preceding week.
You will give us authorization, in a form that we designate or approve, to initiate debit entries or credit correction entries to your HydroDog Business's bank operating account (the "Account") for payments of Royalties and other amounts due under this Agreement, including any applicable interest charges.
You will make the funds available in the Account for withdrawal by electronic transfer no later than the Royalty Payment Day.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if Hydrodog requires franchisees to pay royalties via electronic funds transfer, the franchisee must take specific actions on the designated Payment Day. The franchisee is required to report their HydroDog Business's true and correct Gross Sales for the immediately preceding week. This report must be communicated to Hydrodog by telephone, electronic means, or in written form, according to Hydrodog's directions.
Additionally, the franchisee must ensure that funds are available in their bank operating account for withdrawal by electronic transfer no later than the Royalty Payment Day. The franchisee must have previously authorized Hydrodog to initiate debit entries or credit correction entries to their bank account for royalty payments and other amounts due under the Franchise Agreement. This authorization must be in a form designated or approved by Hydrodog.
In practical terms, this means a Hydrodog franchisee needs to maintain meticulous sales records and be prepared to report those figures accurately and promptly. They also need to ensure their bank account has sufficient funds to cover the royalty payment on the Payment Day to avoid any potential penalties or breaches of the franchise agreement. This reliance on electronic funds transfer is increasingly common in franchising, as it streamlines the payment process and reduces administrative overhead for both the franchisee and franchisor.