If Hydrodog requires electronic funds transfer, who designates the Payment Day?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if Hydrodog requires franchisees to pay royalties via electronic funds transfer, Hydrodog will designate the Payment Day for the royalty payment. The franchisee must then comply with Hydrodog's specified procedures, including providing authorization for debit entries to their Hydrodog Business's bank operating account.
On the Payment Day, the franchisee is required to report their Hydrodog Business's gross sales for the preceding week through telephone, electronic means, or written form, as directed by Hydrodog. The franchisee must ensure that the funds are available in the designated account for electronic withdrawal by the Royalty Payment Day.
This process ensures that Hydrodog can efficiently collect royalty payments and maintain consistent cash flow. It also places a responsibility on the franchisee to accurately report sales and maintain sufficient funds in their account to avoid any issues with the electronic transfer. Franchisees should be aware of these requirements and ensure they are prepared to comply with Hydrodog's electronic funds transfer procedures.