What is the interest rate charged on overdue amounts owed to Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Interest | 2% per month or maximum allowable by law. | As incurred | Payable on all overdue amounts. |
| Late Payment Fee | 10% of the amount due, or the maximum allowable by law | As incurred | Payable on all amounts paid after the date such payment is due. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, overdue amounts are subject to an interest charge. Specifically, Hydrodog may charge interest on all overdue amounts at a rate of 2% per month, or the maximum rate allowable by law, whichever is less. This interest is charged as incurred, meaning it begins accruing as soon as a payment becomes overdue.
In practical terms, this means that if a Hydrodog franchisee fails to make a payment on time, they will be charged interest on the outstanding balance. The interest rate is fairly standard compared to other franchises, which often charge interest on late payments. The franchisee will need to factor in this potential cost when managing their finances and ensuring timely payments to Hydrodog.
In addition to interest, Hydrodog also charges a late payment fee of 10% of the amount due, or the maximum allowable by law, for any payments made after the due date. Franchisees should be aware of both the interest charges and the late payment fee, as these can add up quickly and impact their profitability. It is crucial to prioritize timely payments to avoid these additional costs.