When does the Hydrodog royalty payment obligation begin?
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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the royalty payment obligation begins the first week following the week the franchisee opens their Hydrodog Business. The franchisee must continue to pay royalties for the remainder of the term of the franchise agreement.
The royalty fee is calculated as the greater of 7% of gross sales or $250 per territory. These royalty payments are nonrefundable and are due every Monday for the previous calendar week, which Hydrodog refers to as the "Payment Day." If the Payment Day falls on a national holiday, the payment is due on the first weekday following the national holiday.
It is important for prospective Hydrodog franchisees to understand that the royalty payments are ongoing and are a percentage of gross sales, which can impact profitability. Franchisees should factor this ongoing cost into their financial projections and business plans. Understanding the payment schedule and potential impact of holidays on payment due dates is also crucial for managing cash flow.