What is the requirement for including financial performance information about Hydrodog franchises in the disclosure document?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 19 FINANCIAL PERFORMANCE REPRESENTATIONS
The FTC's Franchise Rule permits a franchisor to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets, if there is a reasonable basis for the information, and if the information is included in the disclosure document. Financial performance information that differs from that included in Item 19 may be given only if: (1) a franchisor provides the
actual records of an existing outlet you are considering buying; or (2) a franchisor supplements the information provided in this Item 19, for example, by providing information about performance at a particular location or under particular circumstances.
As of December 31, 2024, there were 20 franchisee-owned HydroDog businesses in operation. As of the issuance date of this disclosure document 15 of the franchisee-owned HydroDog businesses have reported financial data for the 2024 calendar year.
| Franchisee | Gross Sales | Tips Collected by Franchisee | ||
|---|---|---|---|---|
| January 1, 2024 – December | January 1, 2024 – December 31, | |||
| 31, 2024 | 2024 | |||
| A&M Pups, LLC | $237,972.64 | $30,542.33 | ||
| Clinesmith Company, LLC | $358,757.02 | $66,372.34 | ||
| Amelia Jenks | $117,355 | $10,772 | ||
| P&A Passauer, LLC | $106,703 | Not disclosed | ||
| Hannah’s Hounds, LLC | $61,735 | $11,067.45 | ||
| Jody Maple | $69,540 | Not disclosed | ||
| Blacksmith, LLC | $118,445 | $20,363.68 | ||
| Mingling Paws, LLC | $71,933.96 | $4,237.25 | ||
| Tia Paws, LLC | $77,337 | Not disclosed | ||
| Tail Waggin Grooming, | $71,349.50 | $9,226 | ||
| LLC | ||||
| BP Grooming, LLC | $126,767,30 | $20,316.05 | ||
| Leslie McInnis | $181,045.57 | $8,420.57 | ||
| KC Mobile Grooming, LLC | $361,267.50 | $33,380.73 | ||
| (opened December 2024) | ||||
| HydroDog Coda, LLC | $98,690.60 | $12,336.60 | ||
| (opened October 2024) | ||||
| Dominion Dogs Inc. | $85,540.13 | $10,721.63 | ||
| (opened August 2024) | ||||
| Combined Performance of all Franchisee-Owned HydroDog Businesses that were open | ||||
| January 1, 2024 through December 31, 2024 | ||||
| --- | --- | --- | --- | --- |
| Average | High | Low | Median | Percentage that |
| achieved or | ||||
| exceeded the | ||||
| Average | ||||
| $144,119.42 | $361,267.50 | $61,735 | $102,696 | 27% |
Explanatory Notes:
- "Gross Sales" means all revenue derived from operating the HydroDog Business, including, but not limited to, all amounts received 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 regardless of whether such gift certificates are issued by the HydroDog Business 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;
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–40)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the FTC's Franchise Rule allows Hydrodog to provide information about the actual or potential financial performance of its franchised and/or franchisor-owned outlets if there is a reasonable basis for the information and if the information is included in the disclosure document. This means Hydrodog is permitted to share details about how well its franchises are doing financially, but only if they have a solid reason to believe the information is accurate and they include it in the Franchise Disclosure Document (FDD).
The FDD specifies that financial performance information differing from Item 19 may be given only if Hydrodog provides the actual records of an existing outlet the prospective franchisee is considering buying, or supplements the information provided in Item 19, for example, by providing information about performance at a particular location or under particular circumstances. This ensures that any additional financial information given to a potential franchisee is either based on concrete records or serves to add more detail to the general financial overview in Item 19.
The document also states that other than the financial performance representation provided, Hydrodog does not make any financial performance representations about a franchisee's future financial performance or the past financial performance of Company-owned or franchised outlets. Furthermore, Hydrodog does not authorize its employees or representatives to make any such representations whether orally or in writing. However, if a prospective franchisee is purchasing an existing outlet, Hydrodog may provide the actual records of that outlet. The FDD advises that if a prospective franchisee receives any other financial performance or projections of their future income, they should report it to Hydrodog's management, the Federal Trade Commission, and the appropriate state regulatory agency. This protects potential franchisees from misleading or unsubstantiated claims.
As of December 31, 2024, there were 20 franchisee-owned HydroDog businesses in operation, and 15 of these reported financial data for the 2024 calendar year. The financial performance representation includes data from some franchisees, including 'Gross Sales' which means all revenue derived from operating the HydroDog Business, and 'Tips' which is defined as voluntary monetary gratuities provided by the customer directly to the groomer in recognition of services rendered. The FDD also includes a note that written substantiation of the data used in preparing this information will be provided upon reasonable request, but the information in Item 19 is not audited. The FDD also includes the disclaimer that 'Some outlets have sold this amount. Your individual results may differ. There is no assurance that you'll sell or earn as much.'