How does Hydrodog account for expenditures on maintenance and repairs of property and equipment?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
utility, sign, health, sanitation, business and other permits and licenses required to construct, develop and operate your HydroDog Business; and - (c) acquire the HydroDog Vehicle.
- 5.2 Operating Assets and Business Materials. We will identify in the Manual or through written notice to you the necessary fixtures, furnishings, equipment, hardware and software (the "Operating Assets"), as well as products, services, materials, inventory, equipment, uniforms, apparel, supplies, signs, emblems, lettering, logos, display materials, advertising, vehicle wraps, and financial and accounting services necessary for your HydroDog Business to begin or sustain operations (collectively, the "Business Materials"). We will also specify the minimum standards and specifications that must be met, and identify the approved suppliers from whom these items may be purchased or leased (which may include us and/or our affiliates). You agree to acquire all Business Materials and Operating Assets from us or suppliers we have previously approved, which may include us or our affiliates or third parties. If we do not designate or approve a supplier for the Operating Assets or Business Materials, you must purchase
them in accordance with, and they must meet our System Standards. We may designate quantities, models, brands and inventory levels of Operating Assets and Business Materials. We have the exclusive right to require you to purchase from us, or our designated suppliers, any Operating Assets or Business Materials which bear or display our Marks, and we may be the sole source supplier of such items at our sole discretion. We will only approve suppliers whose Business Materials and Operating Assets meet the quality standards that we establish from time-to-time. You agree to only place or display at, in or on the HydroDog Vehicle (interior and exterior) such signs, emblems, lettering, logos and display materials that we periodically approve. You must pay for the cost of obtaining and installing any Business Materials and Operating Assets we require.
- 5.3 Territory Development Schedule. You must obtain and operate HydroDog Vehicles in accordance with the deadlines set forth in the Territory Development Schedule. You acknowledge and agree that in order to remain in good standing and maintain the Territory rights granted hereunder, you must open and operate HydroDog Vehicles in according with the Territory Development Schedule. Failure to meet the Territory Development Schedule for six (6) consecutive months is a material default of this Agreement, and we may terminate this Agreement for failure to open and operate HydroDog Vehicles in accordance with the Territory Development Schedule.
- 5.4 Approved Suppliers. You are required to comply with all of our System Standards for the approval and use of, or contracting with, third parties and suppliers:
- (a) Designation and Approval of Suppliers: The reputation and goodwill of HydroDog businesses are based upon, and can be maintained and enhanced only by the use of high-quality suppliers of services, materials and inventory.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
Based on the 2025 Hydrodog Franchise Disclosure Document, franchisees are responsible for maintaining and repairing their Hydrodog Vehicle and other operating assets. The FDD states that franchisees must maintain the appearance of their HydroDog Business, including regular painting and the upkeep of interior and exterior signs, emblems, lettering, and logos. Franchisees are also responsible for complying with all laws, ordinances, rules, and regulations relating directly or indirectly to the development of their HydroDog Business, and must remedy any non-compliance at their own expense.
Hydrodog franchisees are required to acquire necessary fixtures, furnishings, equipment, hardware, and software, referred to as "Operating Assets," as well as products, services, materials, inventory, equipment, uniforms, apparel, supplies, signs, emblems, lettering, logos, display materials, advertising, vehicle wraps, and financial and accounting services, known as "Business Materials." These must meet Hydrodog's minimum standards and specifications and be purchased or leased from approved suppliers, which may include Hydrodog or its affiliates. This suggests that franchisees will bear the costs of maintaining and repairing these assets to keep them in good operating condition and compliant with Hydrodog's standards.
Furthermore, the franchisee is responsible for costs associated with the computer system. Modifications and specifications for components, equipment, services, and operating or communications of the Computer System may require the franchisee to incur costs to purchase, lease, or license new or modified Software or computer or communications hardware, equipment, components or Software and to obtain service and support for the Computer System during the Term of this Agreement. The franchisee agrees to incur such costs in connection with obtaining the computer hardware and Software comprising the Computer System (or additions or modifications) operating it in accordance with Hydrodog's System Standards and ensuring that it is compatible.