Can Hydrodog offset reimbursement obligations against amounts owed to the franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.15 Payment Offsets. You acknowledge and agree that we have the right to set-off from any amounts that we may owe you or your owners or any amount that you owe to us, or our affiliates, for any reason whatsoever, including without limitation, Royalties, Marketing Fund Fees, Late Payment Fees and interest on late payments, amounts owed to us or our affiliates for purchases or services or for any other reason.
Thus, payments that we or our affiliates may make to you may be reduced, in our discretion, by amounts that you owe to us or our affiliates from time-to-time.
We will notify you monthly if we elect to do so.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to offset any amounts they may owe to a franchisee against any amounts the franchisee owes to Hydrodog or its affiliates. This includes, but is not limited to, royalties, marketing fund fees, late payment fees, interest on late payments, and amounts owed for purchases or services.
This means that if Hydrodog owes a franchisee money for any reason, Hydrodog can reduce that payment by any outstanding debts the franchisee has with them. Hydrodog will notify the franchisee monthly if they choose to exercise this right.
For a prospective Hydrodog franchisee, this policy means that any potential reimbursements or payments from Hydrodog could be reduced if the franchisee has outstanding financial obligations to the company. It is important for franchisees to maintain good financial standing with Hydrodog to avoid potential offsets.