How often do Hydrodog franchisees pay royalties and technology fees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ritory Fee shall not be prorated if the population of the additional territory is less than 50,000. The Additional Territory Fee is uniform, due in a lump sum, and fully earned and non-refundable upon payment.
- 6.3 Royalty. Beginning the first week following the week you open your HydroDog Business, and continuing throughout the remainder of the Term, you shall pay us a continuing nonrefundable weekly royalty fee ("Royalty(ies)") equal to the greater of (a) seven percent (7%) of Gross Sales or (b) two hundred fifty dollars ($250.00) per Territory. Royalties are payable to us every Monday for the previous calendar week (the "Payment Day"). If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday.
- 6.4 Technology Fee. You must pay to us or our designee a fee in the amount we designate from time to time for our proprietary software and technology services (the "Technology Fee"), which includes but is not limited to website listing, data hosting, scheduling system, customer relationship management (CRM), workflows, virtual assistant technology, and learning and development resources. The Technology Fee is cu
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to pay royalties and technology fees on a regular basis. Specifically, the royalty fee is paid weekly, starting the first week after the Hydrodog business opens. This royalty is the greater of 7% of gross sales or $250 per territory. These royalties are due every Monday for the previous calendar week.
The technology fee, which covers proprietary software and technology services such as website listing, data hosting, and CRM, is paid monthly. The current technology fee is $150 per month, plus an additional $99 per month for each HydroDog vehicle. This fee is due on or before the first Payment Day of each month. Hydrodog retains the right to increase the technology fee with a 90-day written notice.
In summary, Hydrodog franchisees must budget for weekly royalty payments and monthly technology fees. Failing to make these payments when due can result in late payment fees and may constitute grounds for termination of the franchise agreement. This payment structure is typical in the franchise industry, where ongoing fees support the franchisor's services and brand development.