What happens if the contribution to the Hydrodog cooperative is less than the local advertising requirement?

According to Hydrodog's 2025 Franchise Disclosure Document, franchisees may be required to join a regional advertising cooperative if Hydrodog establishes one in their area. The amount a franchisee contributes to the Cooperative counts toward their local advertising requirement. However, if a franchisee's contribution to the Cooperative is less than the total amount they are required to spend on local advertising, they must spend the difference locally. This ensures that franchisees meet the minimum local advertising requirements, even when part of their advertising budget is allocated to a cooperative.

This means that Hydrodog franchisees need to be prepared to manage their local advertising budget in two parts: contributions to the Cooperative and direct local advertising expenditures. Franchisees must track their spending to ensure they meet the minimum local advertising requirements. If the Cooperative contribution falls short, the franchisee is responsible for making up the difference through additional local advertising efforts.

This policy provides Hydrodog with flexibility in managing regional advertising while ensuring consistent local marketing efforts by franchisees. It also places a responsibility on the franchisee to monitor and manage their advertising spending to comply with Hydrodog's requirements.