Will the Hydrodog Marketing Fund be audited?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
The Marketing Fund will not be audited. A statement of monies collected and expenditures made by the Marketing Fund will be prepared annually by us and will be provided to you. Any Marketing Fund contributions not spent in the fiscal year in which they accrue are carried over to the next fiscal year. As the Marketing Fund is not yet established, there have been no expenditures. No Marketing Fund contributions were collected in fiscal year 2024.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Marketing Fund will not be audited. However, Hydrodog will prepare an annual statement of monies collected and expenditures made by the Marketing Fund, which will be provided to franchisees.
This means that while a formal audit by an independent accounting firm will not be conducted, Hydrodog franchisees will receive a yearly report detailing the financial activity of the Marketing Fund. This provides a degree of transparency, allowing franchisees to see how the funds are being used to promote the Hydrodog brand.
It's important to note that any Marketing Fund contributions not spent in the fiscal year are carried over to the next fiscal year. The FDD also states that as the Marketing Fund was not yet established, there were no expenditures and no Marketing Fund contributions were collected in fiscal year 2024. Prospective franchisees should inquire about the current status and future plans for the Marketing Fund to understand how it will operate and benefit their business.