What is Hydrodog's incremental borrowing rate for a lease?

According to Hydrodog's 2025 Franchise Disclosure Document, the company's incremental borrowing rate for a lease is the rate of interest it would have to pay on a collateralized basis to borrow an amount equal to the lease payments under similar terms and in a similar economic environment.

For a prospective franchisee, this means that if you lease equipment or property from Hydrodog, the interest rate used to calculate your lease payments will be based on what Hydrodog itself would have to pay to borrow that same amount, secured by collateral, under similar lease terms and economic conditions. This rate may fluctuate depending on prevailing market conditions and Hydrodog's financial situation.

It's important to note that the specific incremental borrowing rate is not explicitly stated as a fixed percentage in this document. Instead, the FDD defines how that rate is determined. A potential franchisee should inquire about the current incremental borrowing rate during their due diligence to understand the potential cost of leasing from Hydrodog.