According to Hydrodog's 2025 Franchise Disclosure Document, "Gross Sales" encompasses all revenue generated from operating the Hydrodog business. This includes all income derived at or away from the Hydrodog vehicle from any services, products, or activities associated with Hydrodog's trademarks, copyrights, or system. This revenue includes transactions made via cash, check, barter, credit or debit card, and credit transactions. It also includes the redemption value of gift certificates, regardless of who issued them.

However, the definition of "Gross Sales" for a Hydrodog business excludes certain items. Specifically, it does not include federal, state, or municipal sales, use, or service taxes collected from customers and remitted to the appropriate taxing authority. Additionally, customer refunds, adjustments, credits, and allowances actually made by the Hydrodog business are excluded, provided these are documented and verifiable.

Understanding what constitutes "Gross Sales" is crucial for a prospective Hydrodog franchisee because it directly impacts royalty payments and other financial obligations to the franchisor. Franchisees should ensure they maintain accurate records of all transactions and deductions to correctly calculate their gross sales and avoid potential disputes with Hydrodog. Furthermore, the FDD strongly suggests that prospective franchisees conduct an independent investigation and consult with an attorney and financial advisor before signing any agreement with Hydrodog.