What is the Non-Compliance Fee for the third or any subsequent instance of non-compliance with Hydrodog's System Standards?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
arges, together with a five hundred dollar ($500) administrative fee for our expenses and efforts in connection with such procurement, shall be payable by you immediately upon notice.
- 6.18 Non-Compliance Fee. In the event you are, at any time during the term of this Agreement, found to not be in compliance with the terms hereof and/or the System Standards or this Agreement and have failed to cure such failure within the stated cure period herein, you agree to pay to us two hundred fifty dollars ($250) the first time you are found to not be in-compliance with the System; five hundred dollars ($500) for the second time you are found to not be in-compliance with the System; and seven hundred fifty dollars ($750) for the third and any subsequent times you are found to not be in-compliance with the System. Our election to impose non-compliance fees shall not waive or limit any other rights or remedies we may have under this Agreement, including but not limited to our right to later terminate this Agreement for the same or different breaches. If your non-compliance is monetary in nature, we reserve the right to notify your credit union or other banking institution that iss
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, franchisees may incur a non-compliance fee if they fail to adhere to the terms of the Franchise Agreement or Hydrodog's System Standards and do not rectify the issue within the given cure period.
The non-compliance fee structure is tiered. The first instance of non-compliance results in a fee of $250. The second instance increases the fee to $500. For the third and any subsequent instances of non-compliance, Hydrodog will charge a fee of $750.
It's important to note that Hydrodog's decision to impose these fees does not limit their ability to pursue other legal remedies, including terminating the Franchise Agreement. Furthermore, if the non-compliance involves monetary issues, Hydrodog reserves the right to inform the franchisee's lending institution about the breach of the agreement.