May Hydrodog charge fees for participation in Preferred Vendor Programs?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ntributions or remunerations from Preferred Vendors, we may require that you provide to us accountings of such monies or other remuneration you receive, in the manner we designate in the Manuals. We may charge you fees in the amount we may designate from timeto-time for participating in Preferred Vendor Programs which we evaluate or for which we
provide services. If we cancel your participation in any Preferred Vendor Program, we will direct the Preferred Vendor to stop doing business with you on the same terms as it does for other franchisees.
- 5.5 Sale of the Products and Services. In the sale of the Product and Services to consumers, you are not permitted to distribute the Product or Services in any manner that we have not approved in writing or combine the Product or Services with any other product or service without our prior written approval, which we may grant, withhold, or revoke in our sole and absolute discretion. Accordingly, you have no right to sell any of the Products and Services in wholesale, or by any other similar means, nor do you have the right to sell any of the Products and Services of your HydroDog Business through catalog sales, the internet, or by any means other than your HydroDog Business.
- 5.6 Compliance with Laws and Good Business Practices. You are required to secure and maintain in force and in your name all necessary insurance, licenses, permits, and certificates relating to the operation of your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may charge franchisees fees for participating in Preferred Vendor Programs. These fees can be charged for programs that Hydrodog evaluates or for which it provides services. If Hydrodog cancels a franchisee's participation in a Preferred Vendor Program, it will instruct the vendor to cease doing business with the franchisee under the same terms as it does with other franchisees.
Hydrodog also has the right to develop, modify, and terminate Preferred Vendor Programs, which are programs where Hydrodog, its affiliates, or Hydrodog businesses receive negotiated benefits from approved suppliers. Franchisees are required to adhere to Hydrodog's policies and procedures regarding participation in or termination of these programs. Hydrodog can refuse or terminate a franchisee's participation in these programs without terminating the franchise agreement.
Hydrodog may also receive compensation from approved suppliers in the form of fees, rebates, or other consideration for purchases made through these programs. While Hydrodog may contribute these fees or rebates to the Marketing Fund, it is not obligated to reduce a franchisee's Marketing Fund Fees. If franchisees receive any rebates or remunerations from Preferred Vendors, Hydrodog may require them to provide accountings of these monies.