Under what conditions will Hydrodog charge a Non-Compliance Fee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
page_14_Picture_0.jpeg)
| 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 or prolonged absence. | |||
| Non-Compliance Fee | $250 | If incurred | Payable upon your failure to comply |
| for the first | |||
| non-compliance for | with our System standards and | ||
| which we give you | requirements. This fee is in addition to, | ||
| written notice; $500 | and not in lieu of, | ||
| all other rights and | |||
| for the second; $750 | remedies we have under the Franchise | ||
| for the third and | Agreement, including our right to | ||
| subsequent. | terminate the franchise for repeated or | ||
| uncured violations. |
Source: Item 6 — OTHER FEES (FDD pages 12–16)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a Non-Compliance Fee will be charged if a franchisee fails to comply with the System's standards and requirements and does not correct the failure within the given cure period. The fee structure escalates with repeated non-compliance. The first instance of non-compliance after written notice incurs a fee of $250. The second instance increases the fee to $500, and any subsequent instances will result in a fee of $750.
This fee is in addition to any other rights and remedies Hydrodog has under the Franchise Agreement, including the right to terminate the franchise for repeated or uncured violations. This means that while a franchisee may pay the Non-Compliance Fee, Hydrodog still retains the option to pursue further action, including termination, if the violations persist.
For a prospective Hydrodog franchisee, this highlights the importance of adhering to the franchisor's standards and requirements. It is crucial to understand these standards thoroughly and implement them effectively to avoid incurring these fees. The escalating fee structure also incentivizes franchisees to promptly address and correct any issues of non-compliance to prevent further financial penalties and potential termination of the franchise agreement.
It is also important to note that the Non-Compliance Fee is not a substitute for adhering to the franchise agreement. Hydrodog can still pursue other remedies, including terminating the agreement, even if the fees are paid. Franchisees should view compliance as a critical aspect of their business operations to maintain a positive relationship with Hydrodog and ensure the long-term success of their franchise.