How are 'Tips' defined in the context of a Hydrodog business?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Tips" is defined as voluntary monetary gratuities provided by the customer directly to the groomer in recognition of services rendered. These payments are made at the discretion of the customer and are intended as a token of appreciation for the groomer's service quality and professionalism.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 38–40)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, 'Tips' are defined as voluntary monetary gratuities provided by the customer directly to the groomer in recognition of services rendered. These payments are made at the discretion of the customer and are intended as a token of appreciation for the groomer's service quality and professionalism.
For a prospective Hydrodog franchisee, this means that groomers may receive tips from customers in addition to the standard service fees. These tips are not factored into the gross sales figures reported by Hydrodog, as gross sales exclude taxes and customer refunds. The tips are considered separate income for the groomer.
Item 19 of the FDD includes a table showing 'Tips Collected by Franchisee' alongside 'Gross Sales' for several franchisees during the period January 1, 2024 – December 31, 2024. For example, A&M Pups, LLC reported gross sales of $237,972.64 and tips of $30,542.33, while Clinesmith Company, LLC reported gross sales of $358,757.02 and tips of $66,372.34. Some franchisees, such as P&A Passauer, LLC, Jody Maple, and Tia Paws, LLC, did not disclose their tip amounts. The average gross sales for the reporting franchisees was $144,119.42.