Does Hydrodog reserve the right to require electronic funds transfer for royalty payments?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.9 Electronic Funds Transfer. We reserve the right to require you to pay all future payments of the Royalties to us by electronic funds transfer.
If we do so, we shall designate the Payment Day for the Royalty payment.
You agree to comply with the procedures we specify in our Manuals and perform such acts and sign and deliver such documents as may be necessary to accomplish payment by this method.
On the Payment Day, you will report to us by telephone, electronic means or in written form, as we direct, your HydroDog Business's true and correct Gross Sales for the immediately preceding week.
You will give us authorization, in a form that we designate or approve, to initiate debit entries or credit correction entries to your HydroDog Business's bank operating account (the "Account") for payments of Royalties and other amounts due under this Agreement, including any applicable interest charges.
You will make the funds available in the Account for withdrawal by electronic transfer no later than the Royalty Payment Day.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog does reserve the right to require franchisees to make all future royalty payments via electronic funds transfer. If Hydrodog exercises this right, they will designate a Payment Day for the royalty payment.
As a franchisee, you would be obligated to comply with the procedures outlined in Hydrodog's manuals and complete any necessary documentation to facilitate payment through this method. On the designated Payment Day, you must report your HydroDog Business's accurate Gross Sales for the preceding week via telephone, electronic means, or in written form, as directed by Hydrodog.
Furthermore, you will need to authorize Hydrodog to initiate debit entries or credit correction entries to your HydroDog Business's bank operating account for royalty payments and any other amounts due under the agreement, including interest charges. It is your responsibility to ensure that the funds are available in the account for withdrawal by electronic transfer no later than the Royalty Payment Day. This gives Hydrodog direct access to your account for payments, so franchisees should ensure they carefully track sales and payments.