What is the interest rate charged on late payments owed to Hydrodog or its affiliates?

According to Hydrodog's 2025 Franchise Disclosure Document, any amounts owed to Hydrodog or its affiliates will accrue interest after the due date. The annual interest rate applied will be the lesser of two percent (2%) per month, which equates to 24% annually, or the highest contract rate of interest permitted by law.

This means that if a Hydrodog franchisee fails to pay royalties, marketing fees, or any other amounts owed to Hydrodog or its affiliates on time, they will be charged interest on the outstanding balance. The interest rate will either be 2% per month or whatever the maximum rate is that is legally allowed, whichever is lower.

It's important for prospective Hydrodog franchisees to understand this policy and ensure they have sufficient financial resources to meet their obligations to Hydrodog on time to avoid incurring these interest charges. Franchisees should be aware of the potential financial burden of late payments and factor this into their financial planning. Paying on time is crucial to avoid these extra costs and maintain a good financial standing with Hydrodog.