Under what circumstances would Hydrodog charge a Temporary Management Fee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Name of Fee(1) | Amount(4) | Due Date | Remarks |
|---|---|---|---|
| Temporary | $0-$400 per day, | If incurred | We are permitted to step in and operate |
| Management Fee | plus expenses | your HydroDog Business in certain | |
| circumstances, such as default, death, | |||
| disability |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a Temporary Management Fee may be charged under specific circumstances where Hydrodog steps in to operate the franchisee's business. This fee, ranging from $0 to $400 per day plus expenses, is incurred when Hydrodog takes over operations due to events such as the franchisee's default, death, disability, or prolonged absence.
This provision allows Hydrodog to ensure continuity and maintain brand standards even when a franchisee is unable to manage their business. The fee covers the cost of Hydrodog's management and any associated expenses during the temporary takeover. For a prospective franchisee, this means that in unforeseen circumstances, Hydrodog has the right to manage the business, but the franchisee will be responsible for covering the costs of this management, which could significantly impact profitability during that period.
It is important for a potential Hydrodog franchisee to understand the conditions under which this fee may be applied and to factor in the potential financial burden of such a situation. While this clause protects Hydrodog's interests, it also presents a financial risk for the franchisee, who will need to consider how they might cover these costs in the event of an emergency or prolonged absence.