What is the Non-Compliance Fee for the third and subsequent instances 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 Non-Compliance Fee of $750 is charged for the third and subsequent instances of failing to comply with Hydrodog's system standards and requirements. This fee is payable if Hydrodog provides written notice of non-compliance, and the franchisee fails to correct the issue within the given cure period.
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. This means that in addition to paying the fee, a franchisee could face further penalties or even lose their franchise if non-compliance continues.
It is important for prospective Hydrodog franchisees to understand that this fee is not a one-time penalty, but rather a recurring cost that can accumulate with repeated failures to meet system standards. Franchisees should prioritize adhering to Hydrodog's standards and addressing any issues promptly to avoid incurring these fees and potential further consequences.