What is the repayment period for the Hydrodog financed portion of the initial franchise fee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Parameter | Initial Franchise Fee and for additional territories |
|---|---|
| Item Financed (1) | Up to 50% of the Initial Franchise Fee |
| Source of Financing | Us |
| Down Payment | $20,000 |
| Amount Financed | Up to 50% |
| Interest Rate/Finance Charge | 8% per annum (including finance charges) |
| Period of Repayment | 60 months |
| Security Required | Personal Guarantee |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt (2) | If the franchisee is an entity, its owners must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal | Waiver of right to a jury trial; homestead and other exemptions; |
| Rights | waiver of presentment, demand, protest, notice of dishonor. |
| Intent to Sell (3) | There is no intent to sell, assign or factor the debt to a third party. |
| Consideration for placement of | None |
| financing (4) |
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if Hydrodog chooses to finance a portion of the initial franchise fee, the repayment period is 60 months. Hydrodog may finance up to 50% of the initial franchise fee.
For a prospective Hydrodog franchisee, this means that if you qualify for financing from Hydrodog, you will have five years to repay the loan. The interest rate is 8% per annum, which includes finance charges. A personal guarantee is required to secure the debt. If the franchisee is an entity, its owners must personally guarantee the debt.
It is important to note that failure to repay the loan can result in accelerated obligation to pay the entire amount due, covering Hydrodog's court costs and attorney fees incurred in collecting the debt, and termination of the franchise agreement. There is no prepayment penalty, allowing franchisees to pay off the loan early without incurring extra charges. Hydrodog does not intend to sell, assign, or factor the debt to a third party.