How are royalties and technology fees calculated for Hydrodog franchisees?
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. Royalties are payable to us every Monday for the previous calendar week (the "Payment Day"). If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday.
- 6.4 Technology Fee. You must pay to us or our designee a fee in the amount we designate from time to time for our proprietary software and technology services (the "Technology Fee"), which includes but is not limited to website listing, data hosting, scheduling system, customer relationship management (CRM), workflows, virtual assistant technology, and learning and development resources. The Technology Fee is cu
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, royalties and technology fees are ongoing payments franchisees make to the company. The royalty fee is calculated weekly and is the greater of 7% of gross sales or $250 per territory. This means that even if a Hydrodog location has low sales in a given week, the franchisee must still pay the minimum royalty fee of $250.
The technology fee covers Hydrodog's proprietary software and technology services, including website listing, data hosting, scheduling system, CRM, workflows, virtual assistant technology, and learning and development resources. The technology fee is currently $150 per month, plus an additional $99 per month for each Hydrodog vehicle. This fee is due on or before the first payment day of each month.
Hydrodog retains the right to increase the technology fee with 90 days' written notice to franchisees. Both royalty and technology fees are nonrefundable. These fees are critical for Hydrodog to maintain its brand standards, provide ongoing support, and invest in technology advancements that benefit the entire franchise system.