What is the required down payment for Hydrodog's 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 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if Hydrodog finances a portion of the initial franchise fee, the required down payment is $20,000. Hydrodog may finance up to 50% of the initial franchise fee. The interest rate for this financing is 8% per annum, including finance charges, and the repayment period is 60 months.
Hydrodog requires a personal guarantee as security for the financing. If the franchisee is an entity, its owners must personally guarantee the debt. There is no prepayment penalty, but defaulting on the loan results in an 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.
The agreement includes a waiver of the right to a jury trial, homestead and other exemptions, and a waiver of presentment, demand, protest, and notice of dishonor. Hydrodog does not intend to sell, assign, or factor the debt to a third party, and there is no consideration for the placement of financing.