What records must a Hydrodog franchisee maintain?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
rce channels, may serve multiple functions including advertising and promoting HydroDog products, programs, and services, as well as marketing HydroDog franchise opportunities. We exclusively retain all rights to electronic commerce, and you acknowledge that any such platforms may be used by us to exploit these reserved rights.
13. RECORDS, REPORTS AND FINANCIAL STATEMENTS.
13.1 Accounting System. You agree to establish and maintain at your own expense a bookkeeping, accounting and recordkeeping system conforming to the requirements and formats we prescribe from time-to-time. We may require you to use approved computer hardware and Software in order to maintain certain sales data and other information, including updating the Manuals and for communication purposes. You agree that we may have real-time, continuous, and unrestricted access to all sales data, customer information, financial records, and other business information through the Computer System at all times. You hereby grant us a perpetual, irrevocable, worldwide, royalty-free license to use, modify, analyze and share such data for any business purpose, including but not limited to system-wide analytics, optimization, and franchise sales activities, subject to applicable privacy laws and regulations.
13.2 Reports. You agree to furnish to us on such forms that we prescribe from time-to-time:
- (a) on the fifth (5th) day of each calendar month: a report on your HydroDog Business's Gross Sales during the immediately preceding calendar month with the Royalty payment;
- (b) within fifteen (15) days after the end of each calendar quarter: (i) a profit and loss statement for your HydroDog Business for the immediately preceding calendar month and year-to-date; and (ii) a balance sheet as of the end of such month;
- (c) within thirty (30) days after the end of your HydroDog Business's fiscal year: (i) annual profit and loss and source and use of funds statements; and (ii) a balance sheet for your HydroDog Business as of the end of such fiscal year; and
- (d) within ten (10) days after our request: (i) exact copies of federal and state income and other tax returns; and (ii) such other forms, records, books and other information we may periodically require.
- 13.3 Access to Information. You agree to verify and sign each report and financial statement in the manner we prescribe.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must maintain a bookkeeping, accounting, and recordkeeping system that conforms to the franchisor's requirements. Hydrodog may require franchisees to use approved computer hardware and software to maintain certain sales data and other information. Hydrodog is granted real-time, continuous, and unrestricted access to all sales data, customer information, financial records, and other business information through the Computer System at all times. Hydrodog also has a perpetual, irrevocable, worldwide, royalty-free license to use, modify, analyze and share such data for any business purpose.
Specifically, franchisees must furnish reports to Hydrodog on forms that Hydrodog prescribes. By the fifth day of each month, a report on the HydroDog Business's Gross Sales during the preceding month, along with the Royalty payment, must be submitted. Within fifteen days after the end of each calendar quarter, franchisees must submit a profit and loss statement for the HydroDog Business for the preceding calendar month and year-to-date, as well as a balance sheet as of the end of such month. Within thirty days after the end of the HydroDog Business's fiscal year, franchisees must submit annual profit and loss and source and use of funds statements, and a balance sheet for the HydroDog Business as of the end of such fiscal year.
Additionally, within ten days of Hydrodog's request, franchisees must provide exact copies of federal and state income and other tax returns, as well as any other forms, records, books, and other information that Hydrodog may periodically require. Franchisees are responsible for obtaining accounting services and any required hardware or software related to them, from suppliers approved by Hydrodog. Franchisees will at all times maintain the records reasonably specified in the Manuals, including, without limitation, sales, inventory and expense information.
These requirements ensure that Hydrodog franchisees maintain detailed and accurate records of their business operations, allowing Hydrodog to monitor performance, collect royalties, and ensure compliance with system standards. Prospective franchisees should carefully consider the administrative burden associated with these reporting requirements and ensure they have the necessary resources and systems in place to meet them.