How are Hydrodog Marketing Fund Fees paid?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
eady signed a Confidentiality and Non-Solicitation and Non-Competition Agreement.
12. MARKETING AND PROMOTION
- 12.1 Marketing Fund. We have established a system-wide development, marketing and promotional fund (the "Marketing Fund") for the benefit of HydroDog franchisees. You shall participate in the Marketing Fund and contribute one percent (1%) of your Gross Sales each week to the Marketing Fund (the "Marketing Fund Fees**"**). We reserve the right to increase your Marketing Fund Fee to up to two percent (2%) of Gross Sales upon thirty (30) days' written notice to you. You must pay the Marketing Fund Fees in the same manner as the Royalty due under this Agreement. We have the right to require that an advertising/marketing cooperative and/or franchisee advisory council be formed, changed, dissolved or merged. We reserve the right, in our Reasonable Business Judgment, to defer or reduce Marketing Fund Fees of a HydroDog Business franchisee and, upon thirty (30) days prior written notice to you, to reduce or suspend contributions to, and operations of, the Marketing Fund for any period of any length and to terminate (and, if terminated, to reinstate) the Marketing Fund. If the Marketing Fund is terminated, all unspent monies on the date of termination will be distributed to our franchisees in proportion to their respective contributions to the Marketing Fund during the preceding 12-month period, or in a manner we determine.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Marketing Fund, with fees set at one percent (1%) of their Gross Sales each week. These Marketing Fund Fees must be paid in the same manner as the Royalty fees. Hydrodog retains the right to increase the Marketing Fund Fee up to a maximum of two percent (2%) of Gross Sales, provided they give the franchisee thirty (30) days' written notice.
This means that the payment method franchisees use for their royalty payments will also be used for the marketing fund fees. It is important for prospective franchisees to understand the payment procedures for royalties, as those same procedures will apply to the marketing fund fees.
Hydrodog also has the discretion to defer or reduce Marketing Fund Fees for a franchisee. They can also reduce or suspend contributions to, and operations of, the Marketing Fund, or even terminate the Marketing Fund altogether, with thirty (30) days' prior written notice. If the Marketing Fund is terminated, any unspent money will be distributed to franchisees based on their contributions over the previous 12 months or in a manner determined by Hydrodog.
In addition to the standard Marketing Fund fees, Hydrodog may assess additional fees to address any deficits or special needs of the Marketing Fund. All interest earned on the Marketing Fund will be used to pay System Development costs before other assets of the Marketing Fund are used.