When is the Hydrodog Royalty Fee due?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
.
ITEM 6 OTHER FEES
| Name of Fee(1) | Amount(4) | Due Date | Remarks | |---|---|---|---| | Royalty Fee | 7% of Gross Sales per week or $250 per week per Territory, whichever is greater | Payable on Monday of each week (the “Payment Day”) for the previous week's Gross Sales. (3) | Your first Royalty payment is due on the first Monday following your first week of business operations. Paid via automatic funds transfer (ACH). May be increased annually based on changes in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the U.S. Department of Labor, or its successor index. | | Marketing Fund Fee | 2% of Gross Sales. | Payable at the same time and in the same manner as the Royalty | The Marketing Fund Fee will be used for system-wide national or regional marketing activities, as we determine in our sole discretion, to promote and build the HydroDog brand. We maintain sole control over the Marketing Fund and all decisions regarding the use and distribution of Marketing Fund contributions. |
| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Royalty Fee is due each week. Specifically, it is payable on Monday of each week, referred to as the "Payment Day," for the previous week's gross sales. The first royalty payment is due on the first Monday following the franchisee's first week of business operations.
Hydrodog requires royalty payments to be made via automatic funds transfer (ACH). The FDD states that if the designated Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday. Franchisees must report their HydroDog Business' true and correct Gross Sales for the immediately preceding week on the Payment Day via telephone, internet, intranet, electronic means, or written form, as directed by Hydrodog.
The Royalty Fee is 7% of gross sales per week or $250 per week per Territory, whichever is greater. The Royalty Fee may be increased annually based on changes in the Consumer Price Index for All Urban Consumers (CPI-U), as published by the U.S. Department of Labor, or its successor index. Gross Sales are defined in the Franchise Agreement as all revenue derived from operating the Business, with specific inclusions and exclusions outlined in the FDD.