factual

Can the Hydrodog Marketing Fund invest any surplus for future use?

Hydrodog Franchise · 2025 FDD

Answer from 2025 FDD Document

We may spend on behalf of the Marketing Fund, in any fiscal year an amount greater or less than the aggregate contribution of all the HydroDog Businesses to the Marketing Fund in that year, and the Marketing Fund may borrow from us or others to cover deficits or invest any surplus for future use.

Source: Item 23 — RECEIPTS (FDD pages 43–166)

What This Means (2025 FDD)

According to Hydrodog's 2025 Franchise Disclosure Document, the Marketing Fund has the ability to invest any surplus for future use. Hydrodog may spend more or less than the aggregate contributions in any fiscal year, and the Marketing Fund can borrow to cover deficits. This means that Hydrodog has some flexibility in managing the Marketing Fund's finances.

This clause provides Hydrodog with the ability to strategically manage the Marketing Fund, allowing it to save during profitable periods to offset potential losses or increased expenses in other periods. It also allows Hydrodog to borrow funds, potentially enabling larger marketing initiatives that might otherwise be unaffordable.

However, franchisees should be aware that Hydrodog has the discretion to decide how the Marketing Fund is managed, including investment strategies and borrowing decisions. While the goal is to maximize recognition of the Hydrodog brand, there is no guarantee that these strategies will directly benefit each franchisee equally or proportionately to their contributions. Franchisees should inquire about Hydrodog's specific investment and borrowing policies for the Marketing Fund to understand how these practices might impact their franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.