When is the Hydrodog Marketing Fund Fee payable?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Royalty Fee | 7% of Gross Sales per week or $250 per week per Territory, whichever is greater | Payable on Monday of each week (the “Payment Day”) for the previous week's Gross Sales. (3) | Your first Royalty payment is due on the first Monday following your first week of business operations. Paid via automatic funds transfer (ACH). May be increased annually based on changes in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the U.S. Department of Labor, or its successor index. |
| Marketing Fund Fee | 2% of Gross Sales. | Payable at the same time and in the same manner as the Royalty | The Marketing Fund Fee will be used for system-wide national or regional marketing activities, as we determine in our sole discretion, to promote and build the HydroDog brand. We maintain sole control over the Marketing Fund and all decisions regarding the use and distribution of Marketing Fund contributions. |
Explanatory Notes
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- We will designate the day of the week (the "Payment Day") the payments are due. Currently, Payment Day is Monday of each calendar week for the previous week. If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday. We require you to pay all payments due us by electronic funds transfer. You agree to comply with the procedures we specify in our Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method. On the Payment Day, you will report to us by telephone, internet, intranet or electronic means or on written form, as we direct, your HydroDog Business' true and correct Gross Sales for the immediately preceding week. You will make the funds available in the Account for withdrawal by electronic transfer no later than the Payment Day.
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- "Gross Sales" are defined in the Franchise Agreement as all revenue you derive from operating the Business, including, but not limited to, all amounts you receive at or away from the HydroDog Vehicle from any Services, Products or activities whatsoever including any that are in any way associated with the Marks, Copyrights or System, and whether from cash, check, barter, credit or debit card or credit transactions, including the redemption value of gift certificates redeemed by you regardless of whether such gift certificates are issued by you or someone else; but excluding: (1) all federal, state or municipal sales, use or service taxes collected from customers and paid to the appropriate taxing authority; and (2) customer refunds, adjustments, credits and allowances actually made by your HydroDog Business, provided that such refunds, adjustments, credits and allowances are documented and verifiable.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Marketing Fund Fee, which is 2% of Gross Sales, is payable at the same time and in the same manner as the Royalty Fee. The Royalty Fee is due on Monday of each week, referred to as the "Payment Day", for the previous week's Gross Sales. The first Royalty payment is due on the first Monday following the franchisee's first week of business operations and is paid via automatic funds transfer (ACH).
Hydrodog designates the Payment Day as Monday of each calendar week for the previous week. If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday. Franchisees are required to pay all payments due to Hydrodog by electronic funds transfer and must comply with the procedures specified in the manuals.
Each week, on the Payment Day, franchisees must report their Hydrodog Business' true and correct Gross Sales for the immediately preceding week via telephone, internet, intranet, electronic means, or written form, as directed by Hydrodog. The funds must be available in the franchisee's account for withdrawal by electronic transfer no later than the Payment Day. Gross Sales include all revenue derived from operating the business, with specific exclusions for taxes collected and customer refunds.