What is the Non-Compliance Fee for the first instance of non-compliance with Hydrodog's system standards?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Temporary | $0-$400 per day, | If incurred | We are permitted to step in and operate |
| Management Fee | plus expenses | your HydroDog Business in certain | |
| circumstances, such as default, death, | |||
| disability or prolonged absence. | |||
| Non-Compliance Fee | $250 | If incurred | Payable upon your failure to comply |
| for the first | |||
| non-compliance for | with our System standards and | ||
| which we give you | requirements. This fee is in addition to, | ||
| written notice; $500 | and not in lieu of, | ||
| all other rights and | |||
| for the second; $750 | remedies we have under the Franchise | ||
| for the third and | Agreement, including our right to | ||
| subsequent. | terminate the franchise for repeated or | ||
| uncured violations. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a franchisee will be charged a Non-Compliance Fee of $250 for the first instance of failing to comply with Hydrodog's system standards and requirements, provided Hydrodog gives the franchisee written notice of the non-compliance. This fee is payable upon the franchisee's failure to comply.
It's important to note that this fee is in addition to, and not in lieu of, any other legal rights and remedies Hydrodog has under the Franchise Agreement. This could include Hydrodog's right to terminate the franchise agreement if violations are repeated or not corrected.
The Non-Compliance Fee will only be charged if the franchisee fails to correct the issue within the cure period stated by Hydrodog. This implies that franchisees will have an opportunity to rectify any non-compliance issues before the fee is imposed, which is a fairly standard practice in franchising, allowing franchisees a chance to correct mistakes before incurring penalties.