Did HydroDog or its affiliates receive any rebates or payments from approved suppliers on account of franchisee purchases or leases in the last fiscal year?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates may receive rebates or other consideration from unaffiliated suppliers with respect to their sales of products or services to you or other HydroDog franchisees, whether or not the product or service is presently mentioned in this Item. We have negotiated agreements with Groomer's Choice and Evan's Apparel whereby each will pay us a 15% rebate on purchases made by our franchisees. These rebates will be retained by us to offset our costs of operating the franchise system and will not be shared with franchisees. However, as of the issuance date of this disclosure document and for our fiscal year 2024, no rebate amounts have been paid to us under these agreements, and we and our affiliates had not established any other rebate programs.
Except for Legacy Franchisors, LLC, none of our officers or directors owns an interest in any suppliers of products or services to our franchisees. In our last fiscal year, we and our affiliates did not receive any rebates or payments from approved suppliers on account of franchisee purchases or leases of required and approved items from those suppliers.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to HydroDog's 2025 Franchise Disclosure Document, HydroDog and its affiliates did not receive any rebates or payments from approved suppliers based on franchisee purchases or leases during the company's last fiscal year. However, HydroDog has negotiated agreements with Groomer's Choice and Evan's Apparel, where they will receive a 15% rebate on purchases made by HydroDog franchisees. As of the issuance date of the 2025 FDD and for the fiscal year 2024, no rebate amounts have been paid to HydroDog under these agreements, and HydroDog and its affiliates had not established any other rebate programs. These rebates are intended to offset the costs of operating the franchise system and will not be shared with franchisees.
This means that while HydroDog aims to benefit from supplier rebates to support the franchise system, franchisees will not directly receive a portion of these rebates. It's a common practice in franchising for franchisors to negotiate rebates with suppliers, which can help fund system-wide initiatives and support the brand. However, the FDD clearly states that these specific rebates are retained by HydroDog and not passed on to individual franchisees.
Prospective franchisees should be aware that HydroDog retains the right to designate themselves or affiliates as approved suppliers for additional products and services in the future. This could potentially lead to increased revenue for HydroDog through supplier rebates. While the FDD indicates that HydroDog seeks to promote the overall interests of the HydroDog system when negotiating purchase arrangements, franchisees should evaluate whether the negotiated terms are competitive and beneficial for their individual businesses. Franchisees are required to purchase between 70% to 100% of their total purchases and leases from HydroDog, its affiliates, or approved suppliers when establishing their business, and approximately 80% when operating their HydroDog Business.