What is the Non-Compliance Fee for the second 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. | |||
| This fee will only be | |||
| charged if you fail to comply with our | |||
| System standards and requirements and | |||
| fail to cure such failure within the stated |
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 for failing to comply with Hydrodog's system standards and requirements. The fee structure escalates with repeated instances of non-compliance. For the first instance where Hydrodog provides written notice, the fee is $250.
For the second instance of non-compliance, the fee increases to $500. For the third and any subsequent instances, the fee is $750. This fee is in addition to any other rights and remedies Hydrodog has under the Franchise Agreement, including the right to terminate the franchise for repeated or uncured violations.
However, Hydrodog will only charge this fee if the franchisee fails to correct the non-compliance within the given cure period. This progressive fee structure is designed to encourage franchisees to adhere to Hydrodog's standards and address any issues promptly to avoid escalating costs and potential termination of the franchise agreement.