What is the repayment period for the Hydrodog financing 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 franchisee, this means that if you qualify for Hydrodog's financing program, you will have five years to repay the loan. This can make the initial investment more manageable by spreading the cost over a longer period.
It is important to note that the loan will accrue interest at a rate of 8% per annum, including finance charges. Additionally, Hydrodog requires a personal guarantee as security for the loan, and if the franchisee is an entity, its owners must personally guarantee the debt. Defaulting on the loan will accelerate the obligation to pay the entire amount due, and the franchisee will be liable for court costs and attorney fees incurred in collecting the debt, as well as potential termination of the franchise agreement.