What are the two options for calculating the Hydrodog Royalty Fee?
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. |
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 calculated in one of two ways. The franchisee will pay 7% of gross sales per week, or $250 per week per territory, whichever amount is greater. This fee is payable each Monday for the previous week's gross sales and is paid via automatic funds transfer.
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. Gross sales are defined as all revenue derived from operating the business, including revenue from services, products, or activities associated with Hydrodog, whether from cash, check, or credit transactions. Gross sales exclude sales taxes collected and customer refunds.
This royalty structure means that franchisees with lower weekly gross sales will pay a fixed minimum royalty of $250, while those with higher sales volumes will pay a percentage of their revenue. The CPI-U adjustment clause allows Hydrodog to adjust the royalty fee to account for inflation, which could impact the overall cost of the franchise over time. Prospective franchisees should consider how their projected sales volume will affect their royalty payments and factor in potential increases due to inflation.