How must the Hydrodog Royalty Fee be paid?
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. |
Explanatory Notes
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- All fees paid to us or our affiliates are uniform and non-refundable under any circumstances once paid. Fees paid to vendors or other suppliers may be refundable depending on the vendors and suppliers. We currently require you to pay fees and other amounts due to us or our affiliates via electronic funds transfer ("EFT") or other similar means. You are required to complete our thencurrent, EFT authorization. All fees are current as of the Issuance Date of this Franchise Disclosure Document. Certain fees that we have indicated may increase over the term of the Franchise Agreement.
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- We will designate the day of the week (the "Payment Day") the payments are due. Currently, Payment Day is Monday of each calendar week for the previous week. If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday. We require you to pay all payments due us by electronic funds transfer. 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, internet, intranet or electronic means or on written form, as we direct, your HydroDog Business' true and correct Gross Sales for the immediately preceding week. You will make the funds available in the Account for withdrawal by electronic transfer no later than the Payment Day.
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 paid weekly via automatic funds transfer (ACH). The amount is 7% of Gross Sales per week or $250 per week per Territory, whichever is greater. The first Royalty payment is due on the first Monday following the franchisee's first week of business operations.
The FDD specifies that Hydrodog requires franchisees to pay all amounts due to them via electronic funds transfer (EFT) or other similar means, and franchisees must complete the current EFT authorization form. The franchisee is required to report their HydroDog Business' true and correct Gross Sales for the immediately preceding week on the Payment Day, which is currently Monday of each calendar week.
If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday. The franchisee must ensure that the funds are available in the designated account for withdrawal by electronic transfer no later than the Payment Day. 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.