Is there a prepayment penalty for Hydrodog's financing of the initial franchise fee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Parameter | Initial Franchise Fee and for additional territories |
|---|---|
| Item Financed (1) | Up to 50% of the Initial Franchise Fee |
| Source of Financing | Us |
| Down Payment | $20,000 |
| Amount Financed | Up to 50% |
| Interest Rate/Finance Charge | 8% per annum (including finance charges) |
| Period of Repayment | 60 months |
| Security Required | Personal Guarantee |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt (2) | If the franchisee is an entity, its owners must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal | Waiver of right to a jury trial; homestead and other exemptions; |
| Rights | waiver of presentment, demand, protest, notice of dishonor. |
| Intent to Sell (3) | There is no intent to sell, assign or factor the debt to a third party. |
| Consideration for placement of | None |
| financing (4) |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–30)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, there is no prepayment penalty if a franchisee chooses to pay off the financed portion of their initial franchise fee early. Hydrodog provides financing for up to 50% of the initial franchise fee, with the franchisee making a down payment of $20,000. The amount financed can also be up to 50% of the fee.
The interest rate for this financing is 8% per annum, which includes finance charges, and the repayment period is set at 60 months. Hydrodog requires a personal guarantee as security, and if the franchisee is a business entity, its owners must personally guarantee the debt.
In the event of default, the franchisee is obligated to pay the entire amount due immediately, cover Hydrodog's court costs and attorney fees incurred in collecting the debt, and faces termination of the franchise agreement. The agreement also includes a waiver of the right to a jury trial and certain exemptions. Hydrodog does not intend to sell, assign, or factor the debt to a third party.