What is the intended purpose of the Hydrodog Marketing Fund?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund will be intended to maximize recognition of the Marks and patronage of the HydroDog Businesses.
Although we may endeavor to utilize the Marketing Fund to develop advertising and marketing materials and programs and to place advertising that will benefit all the HydroDog Businesses, we undertake no obligation to ensure that expenditures by the Marketing Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Marketing Fund by the HydroDog Businesses operating in that geographic area or that any the HydroDog Business will benefit directly or in proportion to its contribution to the Marketing Fund from the development of advertising and marketing materials or the placement of advertising.
You agree that the Marketing Fund may be used to pay the costs of, but not be limited to, developing, preparing and implementing audio or written advertising and marketing materials; developing and servicing corporate accounts; engaging in research and development; administering regional and multi-regional advertising programs; purchasing e-commerce rights, products or services, direct mail and other media advertising; maintaining or paying third parties to maintain online ordering and fulfillment systems, the Business Management System and the like; supporting public relations and market research; establishing, developing, maintaining, modifying, servicing or hosting Websites or other e-commerce programs, and other advertising, promotion and marketing activities.
We may spend on behalf of the Marketing Fund, in any fiscal year an amount greater or less than the aggregate contribution of all the HydroDog Businesses to the Marketing Fund in that year, and the Marketing Fund may borrow from us or others to cover deficits or invest any surplus for future use.
In addition to other Marketing Fund fees, we may assess you, and you must pay to the Marketing Fund such Marketing Fund fees as we or the Fund deems necessary to address any deficits or special needs of the Marketing Fund.
All interest earned on monies contributed to the Marketing Fund will be used to pay System Development costs before other assets of the Marketing Fund are expended.
We have the right to cause the Marketing Fund to be incorporated or operated through a separate entity at such time as we deem appropriate, and such successor entity will have all of the rights and duties specified in this Agreement.
If the Marketing Fund is terminated, all unspent monies on the date of termination will be distributed to our franchisees in proportion to their respective contributions to the Marketing Fund during the preceding 12-month period, or in a manner we determine.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Marketing Fund is intended to maximize recognition of the Hydrodog marks and increase customer patronage of Hydrodog businesses. The funds may be used for various marketing and advertising activities. These activities include developing audio or written advertising and marketing materials, developing and servicing corporate accounts, engaging in research and development, administering regional and multi-regional advertising programs, purchasing e-commerce rights, products or services, direct mail and other media advertising, maintaining or paying third parties to maintain online ordering and fulfillment systems, supporting public relations and market research, establishing, developing, maintaining, modifying, servicing or hosting Websites or other e-commerce programs, and other advertising, promotion and marketing activities.
Hydrodog or its designee has the authority to direct all programs financed by the Marketing Fund, including the creative concepts, materials and endorsements, and the geographic, market and media placement and allocation. Hydrodog may periodically provide franchisees with samples of advertising, marketing, and promotional materials at no cost, but may charge for multiple copies to cover production, shipping, handling, and storage. The FDD specifies that Hydrodog is not obligated to ensure that marketing expenditures in any area are proportionate to the contributions from Hydrodog businesses in that area, nor is there a guarantee that any Hydrodog business will directly benefit in proportion to its contribution.
Hydrodog may spend more or less than the aggregate contributions to the Marketing Fund in any fiscal year and may borrow or invest funds to cover deficits or surpluses. Franchisees may be assessed additional fees to address deficits or special needs of the Marketing Fund. All interest earned on Marketing Fund monies will be used to pay System Development costs before other assets of the Marketing Fund are expended. Hydrodog retains the right to incorporate the Marketing Fund or operate it through a separate entity. If the Marketing Fund is terminated, all unspent monies will be distributed to franchisees in proportion to their contributions over the preceding 12-month period or in a manner determined by Hydrodog.
Prospective franchisees should note that Hydrodog has significant control over the Marketing Fund and its usage. While the fund aims to benefit all franchisees, there is no guarantee of proportional benefit or expenditure in any specific geographic area. Franchisees should also be aware of the possibility of additional assessments and the potential for changes to the Marketing Fund's structure or even its termination.