What is the highest contract rate of interest permitted by law that Hydrodog can charge on late payments?

According to Hydrodog's 2025 Franchise Disclosure Document, all amounts owed to Hydrodog or its affiliates will accrue interest after the due date. The annual interest rate will be the lesser of two percent (2%) per month or the highest contract rate of interest permitted by law.

For a prospective Hydrodog franchisee, this means that if you fail to pay royalties, marketing fund fees, or amounts due for purchases from Hydrodog or its affiliates on time, you will be charged interest on the outstanding balance. The interest rate will be determined by comparing 2% per month (24% annually) with the maximum legal contract rate in your jurisdiction, and Hydrodog will apply the lower of the two.

It is important to note that the imposition of interest on late payments does not obligate Hydrodog to accept late payments or extend credit to the franchisee. Consistently paying on time is crucial to avoid these charges and maintain a good financial standing with Hydrodog. Franchisees should be aware of the specific laws in their state regarding maximum interest rates to understand the potential charges fully.