Can the Hydrodog Marketing Fund be used to pay for marketing surveys and research?

According to Hydrodog's 2025 Franchise Disclosure Document, the Marketing Fund can be used to cover the costs of marketing surveys and research. Hydrodog franchisees must contribute 1% of their gross sales to the Marketing Fund, and Hydrodog retains the right to increase this contribution to 2% with 30 days' written notice. These funds are intended to benefit all franchisees by promoting and enhancing the Hydrodog system. Hydrodog clarifies that it is not obligated to ensure that marketing expenditures are equivalent or proportionate to each franchisee's contribution.

Hydrodog maintains a National Marketing Program through the Marketing Fund to boost brand awareness and generate leads. Hydrodog has sole discretion over the marketing programs, creative content, and media placement. The Marketing Fund may be used for various marketing activities, including employing a public relations firm, creating marketing materials, managing social media, conducting targeted digital advertising, and organizing special promotions. These activities aim to drive appointment bookings and local business growth through platforms like Meta, TikTok, and Google.

The Marketing Fund also supports email and SMS marketing campaigns, print marketing, influencer collaborations, and multi-regional advertising. Hydrodog may use an in-house advertising department or national/regional advertising agencies. While Hydrodog may establish a Marketing Fund Advisory Committee consisting of franchisees for consultation, Hydrodog retains full control over the fund's administration and use. The Marketing Fund will provide franchisees with approved marketing materials and will not allocate more than 5% of the fund for franchise sales solicitations or more than 20% for administrative items. A statement of the Marketing Fund's finances will be prepared annually and provided to franchisees, with unspent contributions carried over to the next fiscal year.