What are the primary sources of revenue for Hydrodog, according to this document?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.10 Definition of Gross Sales. As used in this Agreement, the term "Gross Sales" means all revenue you derive from operating your HydroDog Business, including, but not limited to, all amounts you receive at or away from the HydroDog Vehicle from any Services, Products or activities whatsoever including any that are in any way associated with the Marks, Copyrights or System, and whether from cash, check, barter, credit or debit card or credit transactions, including the redemption value of gift certificates redeemed by you regardless of whether such gift certificates are issued by you or someone else; but excluding: (1) all federal, state or municipal sales, use or service taxes collected from customers and paid to the appropriate taxing authority; and (2) customer refunds, adjustments, credits and allowances actually made by your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the primary sources of revenue for a Hydrodog business are derived from all revenue generated from operating the Hydrodog Business. This includes all amounts received at or away from the Hydrodog Vehicle from any services, products, or activities associated with the Hydrodog brand, trademarks, copyrights, or system. These revenues can come from various forms of payment, such as cash, check, barter, credit or debit card transactions, and the redemption of gift certificates.
Specifically, Hydrodog defines "Gross Sales" as encompassing all revenue streams, with only limited exclusions. These exclusions are federal, state, or municipal sales, use, or service taxes collected from customers and remitted to the appropriate taxing authority, as well as customer refunds, adjustments, credits, and allowances actually made by the Hydrodog business. This definition clarifies that virtually all income generated through the Hydrodog business model is considered part of the franchisee's gross sales.
For a prospective Hydrodog franchisee, this definition of gross sales is important because it forms the basis for royalty payments and other fees owed to Hydrodog. Franchisees need to accurately track and report all revenue sources to ensure compliance with the franchise agreement and avoid potential penalties or termination. Understanding what constitutes gross sales is crucial for financial planning and assessing the profitability of the Hydrodog franchise.