What is the Hydrodog franchisee's responsibility regarding funds availability in their bank operating account for electronic funds transfer?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
n our absolute and uncontrolled business judgment. If implemented, you must fully participate in all programs and protocols involving the Customer Sales Center, as we may require from time to time at our then-current fee.
- 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. If we determine at any time that you have under reported Gross Sales or underpaid Royalties or other amounts due to us, we will be authorized to immediately initiate a transfer from the Account in the appropriate amount in accordance with the foregoing procedures, including applicable interest and late charges. Any overpayment will be credited to the Account through a credit, effective as of the 1st reporting date after we determine that such credit is due.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog reserves the right to require franchisees to pay all future royalty payments via electronic funds transfer. If Hydrodog exercises this right, they will designate a Payment Day for the royalty payment. The franchisee must then comply with the procedures specified in Hydrodog's manuals and complete all necessary actions and documentation to facilitate payment via this method.
On the Payment Day, the franchisee is required to report their Hydrodog Business's true and correct Gross Sales for the preceding week via telephone, electronic means, or in written form, as directed by Hydrodog. The franchisee must also authorize Hydrodog to initiate debit entries or credit correction entries to the Hydrodog Business's bank operating account (the "Account") for payments of royalties and other amounts due under the Franchise Agreement, including any applicable interest charges.
Most importantly, the franchisee is responsible for ensuring that the funds are available in the designated Account for withdrawal by electronic transfer no later than the Royalty Payment Day. Furthermore, if Hydrodog determines that the franchisee has underreported Gross Sales or underpaid royalties or other amounts, Hydrodog is authorized to immediately initiate a transfer from the Account for the appropriate amount, including applicable interest and late charges. Any overpayment will be credited to the Account through a credit, effective as of the 1st reporting date after Hydrodog determines that such credit is due.