Under what condition can Hydrodog require me to have reviewed or audited financial statements?

According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the right to require franchisees to have reviewed or audited financial statements prepared on an annual basis if Hydrodog reasonably believes that the reports submitted by the franchisee are incorrect.

This means that as a Hydrodog franchisee, you are generally responsible for providing regular financial reports to Hydrodog. However, if Hydrodog has reason to doubt the accuracy of these reports, they can require you to obtain a professional review or audit of your financial statements. This would involve hiring an independent accountant to examine your financial records and provide an opinion on their accuracy and reliability.

The cost of such a review or audit would likely be borne by the franchisee. Therefore, it is in the franchisee's best interest to maintain accurate and transparent financial records to avoid triggering this requirement. This clause protects Hydrodog from potential underreporting of revenue or other financial irregularities that could affect royalty payments or the overall financial health of the franchise system.