Is a Hydrodog franchisee required to conduct local advertising?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
a Cooperative members' inability or failure, within 45 days, to resolve any issue affecting the Cooperative's establishment or effective functioning, upon request of any Cooperative member, that issue must be submitted to us for consideration, and our resolution of such issue is final and binding on all Cooperative members.
- 12.9 Local Advertising Expenditures. In addition to any Marketing Funds set forth herein, you may, but are not required to, conduct advertising for the HydroDog Business in your Territory ("Local Advertising"), provided that all such advertising is in compliance with our standards and has been approved by us in writing. If you choose to conduct Local Advertising, you shall submit to us within thirty (30) days of our request, advertising expenditure reports accurately reflecting your Local Advertising expenditures, including verification copies of all advertising and any other information that we require.
12.10 Websites and Social Media.
As used in this Agreement, the term "Website" means an interactive electronic document within a network of computers linked by communications software. This includes any online presence that references your HydroDog Business, our Marks, or the System, whether operated by you or authorized others, and includes any associated social media pages or accounts. The term Website includes, but is not limited to, Internet and World Wide Web home pages. In connection with any Website, Franchisee agrees to the following:
- (a) We shall have the exclusive right, but not the obligation, to establish and maintain a Website, which shall be managed by HydroDog web designers and may, without limitation, promote the Proprietary Marks, any or all of the Products or Services, HydroDog businesses, the franchising of HydroDog Businesses, and/or the System. This includes management of the resource center, store, and vendor list. We shall have the sole right to control all aspects of the Website, including without limitation its design, content, functionality, links to the websites of third parties, legal notices, and policies and terms of usage; we shall also have the right to discontinue operation of the website.
- (b) We shall have the right, but not the obligation, to designate one or more web page(s) to describe you and/or your HydroDog Business, with such web page(s) to be located within our Website. You shall comply with our policies with respect to the creation, maintenance and content of any such web pages; and we shall have the exclusive right to refuse to post and/or discontinue posting any content and/or the operation of any web page.
- (c) You shall not establish, maintain, or operate any separate Website, mobile application, digital platform, social media account, online marketplace listing, or other online presence whatsoever relating to your HydroDog Business or using the Marks (or any variation thereof) without our prior written approval (which we shall not be obligated to provide). This includes, but is not limited to, registering any domain names, usernames, handles, or other digital identifiers that contain any of the Marks or variations thereof. If approved to establish a Website, you shall comply with our policies, standards and specifications with respect to the creation, maintenance and content of any such Website. You specifically acknowledge and agree that any Website owned or maintained by or for your benefit shall be deemed "advertising" under this Agreement, and will be subject to (among other things) our approval under Section 13 below.
- (d) You are not permitted to promote your HydroDog Business or use any of the Marks in any manner on any social or networking websites, such as Facebook, LinkedIn or Twitter, without our prior written consent. We alone may establish, maintain, modify or discontinue all
internet activities pertaining to the System, including through the use of a page or profile on a social media website such as Facebook, Instagram, TikTok, Twitter or Snapchat. You must comply with our System standards regarding the use of social media in your HydroDog Business' operation, including prohibitions on you and your HydroDog Business'
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are not required to conduct local advertising. However, if a Hydrodog franchisee chooses to conduct local advertising in their territory, it must comply with Hydrodog's standards and receive written approval from Hydrodog. Franchisees must submit advertising expenditure reports accurately reflecting their local advertising expenditures, including verification copies of all advertising and any other required information, within thirty (30) days of Hydrodog's request.
Hydrodog may create a regional advertising cooperative where two or more Hydrodog businesses are located. If Hydrodog establishes a cooperative in the area where a franchisee's Hydrodog Business is located, the franchisee must become a member upon Hydrodog's request. Franchisees are not required to be a member of more than one cooperative. Franchisees must contribute to the cooperative in amounts, at times, and in the manner determined by a majority vote of the cooperative members, subject to Hydrodog's approval. Any amounts contributed to a cooperative will count toward the local advertising requirement. If the contribution to the cooperative is less than the required local advertising amount, the franchisee must spend the difference locally.
The cooperative must be organized and governed in a form and manner, and commence operation on a date that Hydrodog approves in writing. The cooperative must be organized for the exclusive purpose of administering marketing programs and developing standardized promotional materials for the members' use in local advertising within the cooperative's area, subject to Hydrodog's approval. The cooperative may adopt its own rules and procedures, but such rules or procedures must be approved by Hydrodog and must not restrict or expand the franchisee's rights or obligations under the Franchise Agreement. Any lawful action of the cooperative at a meeting attended by members possessing more than fifty percent (50%) of the total voting power in the cooperative is binding upon the franchisee if approved by members possessing more than fifty percent (50%) of the total voting power possessed by members in attendance, with each franchised business having one vote (including businesses Hydrodog owns that exist within the cooperative's area), but no franchisee (or commonly controlled group of franchisees) may have more than twenty-five percent (25%) of the vote in the cooperative regardless of the number of franchised businesses owned. Without Hydrodog's prior written approval, the cooperative may not use, nor furnish to its members, any marketing or promotional plans or materials; all such plans and materials must be submitted to Hydrodog for approval. No later than the 15th day of each month, each member/franchisee must submit its contribution to the cooperative, together with such other statements or reports as Hydrodog or the cooperative may require, with Hydrodog's prior written approval. If an impasse occurs because of a Cooperative members' inability or failure, within 45 days, to resolve any issue affecting the Cooperative's establishment or effective functioning, upon request of any Cooperative member, that issue must be submitted to Hydrodog for consideration, and Hydrodog's resolution of such issue is final and binding on all Cooperative members.