Can Hydrodog or its affiliates be the only approved supplier for certain items or services?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ll provide you with a list, that we may modify from time-to-time, in our Business Judgment, of approved manufacturers, suppliers, or distributors of Operating Assets and Business Materials. We may designate approved or designated suppliers, providers, distributors, or manufacturers for any types, models or brands of business materials, inventory, Operating Assets, and other equipment and business services that we approve for the HydroDog Businesses or which we designate in the Manuals as relating to the establishment or operation of the HydroDog Business, which may include us or our affiliates as one of, or the only approved or designated supplier for certain items or services (the "Approved Suppliers"). You can only purchase materials and inventory for your HydroDog Business from Approved Suppliers. Purchasing materials and inventory from suppliers that are not Approved Suppliers is grounds for default and/or termination of this Franchise Agreement. You agree that you will not, without our written approval, use or authorize any of your owners to use any services, material, inventory, supplies or equipment and/or suppliers, distributors, manufacturers or service providers not authorized by us for your HydroDog Business. You must utilize any ordering system that any of our Approved Suppliers (including us or our affiliates) designate. We, our affiliates, or Approved Suppliers may charge a mark-ups/profits margin on the sale of business materials, operating assets, supplies, and inventory that we or they sell to you. We, or they, do not represent or warrant in any manner whatsoever that we, or they, will limit the amount of markup/profit margin on such sales, and we, or they, may change, modify, increase, or decrease such mark-up/profit margins at any time.
- (b) Review Procedures: Our approval of Operating Assets, Business Materials, and Approved Suppliers will be communicated through the specifications and standards designated in our Manuals or via other communications to you from time-to-time. In approving
types, models, brands and suppliers, manufacturers, distributors or service providers, we may take into consideration such factors as quality, warranty and prices. We may approve one or a limited number of suppliers, manufacturers, distributors or service providers in order to obtain lower prices or materials of a more uniform and/or higher quality.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog or its affiliates may be the sole approved supplier for certain items or services. Hydrodog maintains a list of approved suppliers for Operating Assets and Business Materials, which it may modify over time. Franchisees are required to purchase materials and inventory exclusively from these Approved Suppliers. Failure to do so can result in default or termination of the Franchise Agreement. Franchisees cannot use any unauthorized services, materials, inventory, supplies, or equipment without written approval from Hydrodog. Franchisees must also use any ordering system designated by Hydrodog or its Approved Suppliers. Hydrodog, its affiliates, or Approved Suppliers may charge mark-ups and profit margins on sales of business materials, operating assets, supplies, and inventory without any representation or warranty as to the limit of such markups.
Hydrodog has the exclusive right to require franchisees to purchase any Operating Assets or Business Materials that bear or display Hydrodog's Marks from Hydrodog or its designated suppliers, and Hydrodog may be the sole source supplier of such items at its discretion. Hydrodog will only approve suppliers whose Business Materials and Operating Assets meet the quality standards that Hydrodog establishes. Franchisees must only place or display approved signs, emblems, lettering, logos, and display materials on the HydroDog Vehicle.
Specifically, franchisees must use Hydrodog's approved supplier for scheduling all grooming appointments and pay the then-current monthly Scheduling Fee. Franchisees must only offer and sell Products and Services and other items that Hydrodog has designated or previously approved for sale at the HydroDog Business, obtaining these from designated or approved suppliers, which may include only Hydrodog or its affiliates. This means Hydrodog retains significant control over the supply chain and product offerings, ensuring consistency and quality across all franchise locations, but also potentially limiting the franchisee's autonomy and increasing costs if Hydrodog's approved suppliers are more expensive than alternatives.