How often will Hydrodog notify a franchisee if they elect to offset payments?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog will notify a franchisee monthly if they elect to offset payments. This means that if Hydrodog owes a franchisee money but the franchisee also owes Hydrodog or its affiliates money, Hydrodog can reduce the payment to the franchisee by the amount the franchisee owes.

This offset can include, but is not limited to, royalties, marketing fund fees, late payment fees, and interest on late payments, as well as amounts owed for purchases or services. The notification will occur monthly if Hydrodog chooses to exercise this right.

For a prospective franchisee, this means that Hydrodog has the right to reduce payments to them to cover any outstanding debts the franchisee may have. It is important for franchisees to maintain good financial standing with Hydrodog to avoid payment offsets. Franchisees should also carefully review their monthly statements to ensure they understand any offsets that have been applied.