When is the late payment fee due for a Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
and any interest accrued thereon, and any other amounts which you owe us or our affiliates, are subject to a late payment fee of ten percent (10%) of the amount due, or the highest rate permitted by law (the "Late Payment Fee"). The Late Payment Fee is due immediately upon any delinquent payments and is in addition to any other fees due and payable to us. The provision in this Agreement concerning Late Payment Fees does not mean that we accept or condone late payments, nor does it indicate that we are willing to extend credit to, or otherwise finance the operation of, your HydroDog Business.
- 6.13 Insufficient Funds Fee. If any payment from you does not successfully convey funds due to insufficient funds, stop payment instructions, or any similar event, you shall pay, upon demand, an insufficient funds fee equal to fifty dollars ($50.00).
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a late payment fee is due immediately upon any delinquent payments. This fee applies to all Royalties, Marketing Fund Fees, amounts due for purchases from Hydrodog or its affiliates, any interest accrued, and any other amounts owed to Hydrodog or its affiliates. The late payment fee is calculated as ten percent (10%) of the amount due, or the highest rate permitted by law.
This means that if a Hydrodog franchisee fails to make a payment on time for any of the aforementioned fees or purchases, they will immediately incur a late payment fee. This fee is in addition to any other amounts already owed to Hydrodog. The FDD also states that Hydrodog does not accept or condone late payments, and the presence of a late fee provision does not indicate a willingness to extend credit to franchisees.
Furthermore, Hydrodog retains the sole discretion to apply any payments received from the franchisee to any past due indebtedness. This means that even if a franchisee attempts to designate a payment for a specific purpose, Hydrodog can instead apply it to older outstanding debts, potentially triggering additional late fees on more recent obligations. Franchisees should, therefore, prioritize timely payments to avoid these additional costs and maintain a good financial standing with Hydrodog.
In addition to late payment fees, Hydrodog also charges an insufficient funds fee of $50.00 if any payment is unsuccessful due to insufficient funds or a stop payment instruction. This highlights the importance of ensuring sufficient funds are available when making payments to Hydrodog to avoid incurring additional fees.