Is a Hydrodog franchisee required to participate in the Marketing Fund program?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We currently have a national marketing fund (the "Marketing Fund") for the common benefit of HydroDog franchisees. You currently must contribute 1% of your Gross Sales to the Marketing Fund in the manner we prescribe and participate in Marketing Fund program. We reserve the right to increase your Marketing Fund contribution to up to 2% of Gross Sales upon thirty (30) days' written notice to you. Franchisor and affiliate owned locations will contribute to the Marketing Fund on the same basis as franchisees. (Franchise Agreement, Section 12.1). The monies collected will be separately accounted for on our books and records. These sums are used for the benefit of all franchisees in order to promote and enhance the value of the System. We are not obligated, in administering the Marketing Fund, to make expenditures for you which are equivalent or proportionate to your contribution, or to ensure that any particular franchisee benefits directly or pro rata from expenditures by the Marketing Fund.
As the Franchisor, we maintain a National Marketing Program through the Marketing Fund to promote brand awareness and generate leads for all franchisees. We will direct all marketing programs financed by the Marketing Fund and will have sole discretion over the creative concepts, materials, and endorsements used and the geographic market and media placement and allocation. We will use an in-house advertising department, or national or regional advertising agencies. The Marketing Fund may be used to pay the costs of conducting marketing surveys and research; employing a public relations firm; preparing and producing video, audio, and written marketing materials;: (1) professionally designed social media graphics, templates, and national content calendar management; (2) targeted digital advertising on
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, franchisees must participate in the Marketing Fund program. Currently, franchisees must contribute 1% of their gross sales to the Marketing Fund. Hydrodog retains the right to increase this contribution up to 2% of gross sales with thirty days written notice. Hydrodog and affiliate-owned locations contribute to the Marketing Fund on the same basis as franchisees.
The funds collected are to be accounted for separately and used to promote and enhance the value of the Hydrodog system for the benefit of all franchisees. However, Hydrodog is not obligated to ensure that expenditures are equivalent or proportionate to a franchisee's contribution, nor that any particular franchisee benefits directly or pro rata from the Marketing Fund's expenditures.
Hydrodog maintains a National Marketing Program through the Marketing Fund to promote brand awareness and generate leads for all franchisees. Hydrodog has sole discretion over the marketing programs, creative concepts, materials, endorsements, geographic market, and media placement and allocation. The marketing programs may include marketing surveys and research; employing a public relations firm; preparing and producing video, audio, and written marketing materials; social media graphics, templates, and national content calendar management; targeted digital advertising; email and SMS marketing campaigns; print marketing support; influencer marketing initiatives; and special promotions.