What general operating expenses can the Hydrodog Marketing Fund cover?

According to Hydrodog's 2025 Franchise Disclosure Document, the Marketing Fund is intended to maximize recognition of the Hydrodog brand. While the fund will not be used to defray Hydrodog's general operating expenses, it can cover reasonable salaries, administrative costs, travel expenses, and overhead that Hydrodog incurs while administering the Marketing Fund and its programs. These programs include conducting market surveys, preparing advertising, promotion, and marketing materials, and collecting and accounting for contributions to the Marketing Fund.

Hydrodog may spend more or less than the aggregate contributions from franchisees in any fiscal year. The Marketing Fund can borrow to cover deficits or invest surpluses for future use. Franchisees may be assessed additional fees to address deficits or special needs of the Marketing Fund. All interest earned on Marketing Fund monies will be used to pay System Development costs before other assets of the Marketing Fund are used.

Hydrodog directs all programs financed by the Marketing Fund, including creative concepts, materials, endorsements, geographic, market, and media placement and allocation. The Marketing Fund may be used to pay for developing, preparing, and implementing advertising and marketing materials, developing and servicing corporate accounts, engaging in research and development, administering regional and multi-regional advertising programs, purchasing e-commerce rights, products, or services, direct mail and other media advertising, maintaining online ordering and fulfillment systems, supporting public relations and market research, and establishing, developing, maintaining, or hosting websites or other e-commerce programs, and other advertising, promotion, and marketing activities.

Hydrodog may furnish franchisees with samples of advertising, marketing, and promotional formats and materials at no cost, but multiple copies of such materials may be furnished at the franchisee's direct cost, including production, shipping, handling, and storage charges. While Hydrodog aims to develop advertising and marketing that benefits all franchisees, there is no obligation to ensure that expenditures in any geographic area are proportionate to the contributions from franchisees in that area, or that any franchisee will benefit directly or in proportion to their contribution.