When are Hydrodog royalties payable?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ritory Fee shall not be prorated if the population of the additional territory is less than 50,000. The Additional Territory Fee is uniform, due in a lump sum, and fully earned and non-refundable upon payment.
- 6.3 Royalty. Beginning the first week following the week you open your HydroDog Business, and continuing throughout the remainder of the Term, you shall pay us a continuing nonrefundable weekly royalty fee ("Royalty(ies)") equal to the greater of (a) seven percent (7%) of Gross Sales or (b) two hundred fifty dollars ($250.00) per Territory.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees must pay royalties weekly. Specifically, the royalty payments are due every Monday for the previous calendar week. This day is referred to as the "Payment Day." If the Payment Day falls on a national holiday, the royalty payment is due on the first weekday following the national holiday.
The royalty fee is calculated as the greater of seven percent of gross sales or $250 per territory. Gross sales include all revenue derived from operating the HydroDog business, with specific exclusions for sales taxes collected and customer refunds or adjustments. Hydrodog also reserves the right to require franchisees to pay royalties via electronic funds transfer, specifying procedures in their manuals to facilitate this payment method.
It is important for prospective Hydrodog franchisees to understand these payment terms and ensure they have sufficient cash flow to meet these weekly obligations. Failure to pay royalties when due can result in late payment fees, potential interest charges, and even termination of the franchise agreement. Franchisees should also be aware of Hydrodog's right to offset payments and its policies regarding insufficient funds fees, as these can impact their financial obligations.