What procedures must Hydrodog franchisees comply with to accomplish payment?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
he vendors and suppliers. We currently require you to pay fees and other amounts due to us or our affiliates via electronic funds transfer ("EFT") or other similar means. You are required to complete our thencurrent, EFT authorization. All fees are current as of the Issuance Date of this Franchise Disclosure Document. Certain fees that we have indicated may increase over the term of the Franchise Agreement.
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- "Gross Sales" are defined in the Franchise Agreement as all revenue you derive from operating the 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, provided that such refunds, adjustments, credits and allowances are documented and verifiable.
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- We will designate the day of the week (the "Payment Day") the payments are due. Currently, Payment Day is Monday of each calendar week for the previous week. If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday. We require you to pay all payments due us by electronic funds transfer. You agree to comply with the procedures we specify in our Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method. On the Payment Day, you will report to us by telephone, internet, intranet or electronic means or on written form, as we direct, your HydroDog Business' true and correct Gross Sales for the immediately preceding week. You will make the funds available in the Account for withdrawal by electronic transfer no later than the Payment Day.
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to make payments via electronic funds transfer (EFT) or similar methods. To facilitate this, franchisees must complete Hydrodog's current EFT authorization form. The standard payment day is Monday of each calendar week for the previous week's gross sales, but if Monday falls on a national holiday, the payment is due the next weekday.
Each week, on the designated Payment Day, franchisees must report their Hydrodog Business's gross sales for the previous week via telephone, internet, intranet, electronic means, or written form, as directed by Hydrodog. The franchisee must ensure that the funds are available in their account for electronic withdrawal by the Payment Day.
The Royalty Fee, set at 7% of gross sales per week or $250 per week per Territory (whichever is greater), is also payable on Mondays via automatic funds transfer. The Marketing Fund Fee, which is 2% of gross sales, is payable at the same time and in the same manner as the Royalty Fee. Hydrodog may increase the Royalty Fee annually based on changes in the Consumer Price Index for All Urban Consumers (CPI-U).
Hydrodog also charges a Technology Fee of $150 per month, plus $99 per month for each HydroDog Vehicle, payable on the 1st of each calendar month. All fees paid to Hydrodog or its affiliates are non-refundable under any circumstances once paid. Failure to comply with these payment procedures may result in late payment fees, interest charges, or other penalties as outlined in the FDD.