How to Decode Hike Doggie’s Franchise Disclosure Document (FDD)

This blog is dedicated to teaching you what to expect when you review the Hike Doggie FDD.

Franchise disclosure documents are extremely valuable in the assessment phase of your entrepreneurial journey. Once you reach this all-important step, there are things you should know about them in advance, beginning with the fact it’s a 23-part legal document regulated by the Federal Trade Commission. Each of these sections provides potential candidates with all the information (and disclosures) that are necessary to make an informed decision about moving forward with a purchase.

According to the FTC’s Federal Franchise Rule, all brands must update their FDDs within 120 days of their fiscal year-end. Some franchisors update their FDD on a quarterly basis, provided there have been changes in the business models’ data, statistics, fees, or legal status. Reviewing Hike Doggie’s FDD is the epitome of due diligence, as this legally binding document carefully spells out the roles and responsibilities of franchisor and franchisee alike. As for the different sections included in a typical FDD, here are some breakdowns, section-by-section:

Items 1-4: The “Who”

The first four sections provide candidates with all of the basic information on who Hike Doggie is. Though not the case with Hike Doggie, this section may include additional information such as whether a parent company owns the franchise, and whether there are any stakeholders, predecessors, or other affiliate organizations.

Items 5-9: The “How Much?”

These sections require franchisors like Hike Doggie to disclose an accurate picture of all the fees involved – not just in starting the business but also running it. Also included in these sections of the FDD are any disclosed costs for advertising, technology, as well as the total investment range required of candidates looking to join our network of franchise owners. Drilling down a little further, Item 9 details the franchisee’s legal obligations in explicit detail. If you need to know what you’re responsible for from Hike Doggie’s perspective, you’ll find it here.

Items 10-18: “The What?”

This section may as well be described as the quid pro quo section. Everything included in sections 10-18 discloses what you, as the franchise owner, receive in exchange for buying into the Hike Doggie franchise network. Of most importance is information related to your territorial boundaries as a Hike Doggie owner, which can be found in Item 12. As a new owner, your target market will include any and all of the dog owners in your protected territory, defined as a minimum of 10,000 households.

Items 19-21: “The Financials of How it Works”

Here, you’ll find everything you need to know about the franchisors’ financial performance and an idea of what you can expect to earn as an owner in their system. Of all the sections in the FDD, perhaps none is more important to candidates than Item 19, which deals with Hike Doggie’s financial performance. This section includes and discloses any statements and/or claims from the franchisor as to the financial performance of existing units, and how they may perform for prospective franchisees.

Items 22-23: “Legalese”

These final two sections are considered “legalese,” and are meant to disclose everything that’s related to the Hike Doggie franchise agreement.

Hopefully, you now have a much better idea of what the FDD is, what it can tell you, and why it’s such an important part of the franchise buying process. Because this step is such an important one on the way to Hike Doggie franchise ownership, It’s highly advisable for candidates to retain professional assistance in the form of a qualified franchise attorney or CPA to help guide you through this process and answer any questions about things that are unclear to you. Above all, it’s important for you to be patient and allow for the requisite amount of time you need to make an informed decision about becoming a Hike Doggie franchisee. In the end, our FDD is simply a highly detailed roadmap for determining if our opportunity is right for you.

About Hike Doggie

Hike Doggie was founded in 2016 with a mission to “make dogs as happy as they make us”. The business model is predicated on providing a professional and turnkey dog hiking service. Our vision is to create

unforgettable outdoor experiences for dogs, ensuring their physical and emotional well-being while fostering a deep bond between them and their human families. Hike Doggie offers a low barrier to entry, quick conversion, and strong retention rates – not to mention extremely happy clients. To date, Hike Doggie has participated in over 50,000 dog hikes and we’d like to have you help us add to that total. Hit the trail to success and explore franchise ownership with Hike Doggie by reaching out to our franchise development specialists at Franchise Evolution Partners to begin your personal journey. Watch this informative video on YouTube to discover how your life can change as a Hike Doggie owner. And be sure to read our blog, follow us on Instagram, connect with us on LinkedIn, and watch our collection of videos on TikTok.