Is the Hydrodog initial franchise fee refundable?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Initial Franchise Fee
When you sign your franchise agreement, you must pay us an Initial Franchise Fee ("Franchise Fee") of $40,000 for a Territory with a population of up to 150,000. The Franchise Fee is uniform, due in lump sum, and fully earned and non-refundable upon payment.
U.S. Veterans' Discount
If (i) you are a veteran, (ii) your spouse is a veteran or on active duty, (iii) your biological mother or father is a veteran or on active duty, (iv) your spouse's biological mother or father is a veteran or on active duty, (v) your child is a veteran or on active duty, or (vi) the shareholders, members, or partners owning at least 51% of franchised business are veterans then we will discount our initial franchise fee for your first HydroDog franchise by 15%. This discount applies solely to the Franchise Fee for your first franchise and does not apply to any Additional Territory Fees, subsequent franchise purchases, or any other fees or charges under the Franchise Agreement. "Veteran" means honorably discharged from the U.S.
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the initial franchise fee is generally not refundable. Item 5 states that the initial franchise fee of $40,000 for a territory with a population of up to 150,000 is "fully earned and non-refundable upon payment." Item 7 and Item 23 also reiterate that the initial franchise fee is not refundable.
This means that once a prospective Hydrodog franchisee pays the initial franchise fee upon signing the franchise agreement, they will not receive a refund under any circumstances. This is a standard practice in franchising, as the fee compensates the franchisor for granting the franchise rights and providing initial support.
However, Hydrodog does offer a 15% discount on the initial franchise fee for U.S. veterans and their qualifying family members for their first Hydrodog franchise. This discount does not apply to additional territory fees, subsequent franchise purchases, or any other fees under the Franchise Agreement.