How is the Hydrodog Royalty Fee 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. |
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- "Gross Sales" are defined in the Franchise Agreement as all revenue you derive from operating the Business, including, but not limited to, all amounts you receive at or away from the HydroDog Vehicle from any Services, Products or activities whatsoever including any that are in any way associated with the Marks, Copyrights or System, and whether from cash, check, barter, credit or debit card or credit transactions, including the redemption value of gift certificates redeemed by you regardless of whether such gift certificates are issued by you or someone else; but excluding: (1) all federal, state or municipal sales, use or service taxes collected from customers and paid to the appropriate taxing authority; and (2) customer refunds, adjustments, credits and allowances actually made by your HydroDog Business, provided that such refunds, adjustments, credits and allowances are documented and verifiable.
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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.
Hydrodog designates Monday as the Payment Day for the previous week's Gross Sales. If a national holiday falls on a Payment Day, the payment is due on the first weekday following the holiday. Franchisees must report their HydroDog Business' true and correct Gross Sales for the immediately preceding week by telephone, internet, intranet, electronic means, or written form, as directed by Hydrodog.
The funds must be available in the franchisee's account for withdrawal by electronic transfer no later than the Payment Day. Gross Sales include all revenue derived from operating the business, including amounts received at or away from the HydroDog Vehicle from any Services, Products, or activities associated with the Marks, Copyrights, or System, whether from cash, check, barter, credit or debit card, or credit transactions, including the redemption value of gift certificates. Gross Sales exclude sales, use, or service taxes collected from customers and paid to the appropriate taxing authority, and customer refunds, adjustments, credits, and allowances actually made by the HydroDog Business, provided they are documented and verifiable.
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. Franchisees are required to complete Hydrodog's then-current EFT authorization and comply with the procedures specified in the manuals to facilitate payment by electronic funds transfer.