What is the minimum weekly royalty fee for a Hydrodog territory?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ritory Fee shall not be prorated if the population of the additional territory is less than 50,000. The Additional Territory Fee is uniform, due in a lump sum, and fully earned and non-refundable upon payment.
- 6.3 Royalty. Beginning the first week following the week you open your HydroDog Business, and continuing throughout the remainder of the Term, you shall pay us a continuing nonrefundable weekly royalty fee ("Royalty(ies)") equal to the greater of (a) seven percent (7%) of Gross Sales or (b) two hundred fifty dollars ($250.00) per Territory.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must pay a weekly royalty fee. This royalty is calculated as the greater of two options. The first option is seven percent of the franchisee's gross sales. The second option is a flat rate of $250 per territory. Therefore, the minimum weekly royalty fee that a Hydrodog franchisee will pay is $250 per territory.
This royalty payment is due every Monday for the previous calendar week. If Monday falls on a national holiday, the payment is due on the first weekday following the holiday. Hydrodog also reserves the right to require franchisees to pay royalties via electronic funds transfer.
It is important to note that failure to pay royalties when due can result in a late payment fee of ten percent of the amount due, or the highest rate permitted by law. This late payment fee is in addition to any other fees owed to Hydrodog. Additionally, Hydrodog has the right to offset any amounts they may owe the franchisee from any amount that the franchisee owes to Hydrodog, including royalties and late payment fees.