How many votes does each Hydrodog franchised business have in the cooperative?

According to Hydrodog's 2025 Franchise Disclosure Document, each franchised business, including those owned by Hydrodog, has one vote within the Cooperative. However, no franchisee or group of franchisees under common control can hold more than 25% of the total vote in the Cooperative, regardless of how many franchised businesses they own. This ensures that power is distributed among franchisees.

This voting structure is subject to Hydrodog's approval, meaning Hydrodog retains control over the Cooperative's actions. Any lawful action of the Cooperative requires approval by members possessing more than 50% of the total voting power, provided that members holding over 50% of the total voting power are in attendance. This means that decisions require both a majority of the vote and a quorum of members present.

This arrangement is typical in franchise systems where advertising cooperatives are formed. The purpose is to allow franchisees to have a say in marketing and advertising strategies while ensuring that no single franchisee or small group can dominate the decision-making process. Hydrodog maintains ultimate authority over the Cooperative's rules, procedures, and marketing plans, which is common for franchisors to ensure brand consistency and compliance with system standards.

Prospective Hydrodog franchisees should understand that while they have a vote in the Cooperative, their influence may be limited if they are part of a larger group of franchisees under common control. They should also be aware that Hydrodog has the final say on all Cooperative matters, which could impact the Cooperative's ability to address local advertising and marketing needs effectively.