Can the Hydrodog Royalty Fee be increased, and if so, based on what?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| 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. |
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 can be increased annually. The Royalty Fee is 7% of Gross Sales per week or $250 per week per Territory, whichever is greater.
The FDD specifies that Hydrodog may increase the Royalty Fee 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. This means that as the cost of living rises, Hydrodog reserves the right to adjust the royalty fee accordingly.
For a prospective franchisee, this means that the initial royalty fee outlined in the agreement is not necessarily fixed for the duration of the franchise term. Franchisees should factor in potential increases to the royalty fee when projecting their operating costs and profit margins. It is important to monitor the CPI-U and understand how changes in the index could affect the royalty payments to Hydrodog. Franchisees should also inquire about how frequently Hydrodog has historically increased the royalty fee and what the typical percentage increases have been.