Under what circumstances might payments to third parties be refundable when investing in a Hydrodog franchise?

According to Hydrodog's 2025 Franchise Disclosure Document, payments made to third parties may be refundable if the franchisee and the third party specifically agree to allow for a refund. This is a conditional arrangement, meaning it is not automatically guaranteed but depends on the terms negotiated between the franchisee and the third-party service provider.

Item 7 of the FDD, which outlines the estimated initial investment, includes several potential payments to third parties. These include costs for the HydroDog vehicle delivery, professional fees (lawyer, accountant, etc.), computer systems, office equipment, utility deposits, insurance premiums, state and local business licenses and permits, and grooming school costs. The refundability of these payments hinges on the specific agreements made with each third party.

This arrangement means that prospective Hydrodog franchisees should carefully review the refund policies of all third-party vendors before making any payments. It would be prudent to negotiate favorable refund terms whenever possible to mitigate financial risk. Franchisees should obtain written confirmation of these refund policies to avoid misunderstandings later on. Unlike fees paid directly to Hydrodog, which are generally non-refundable, there is potential flexibility with third-party payments if the franchisee proactively manages these relationships and agreements.