What are the consequences of purchasing materials and inventory from suppliers that are not Approved Suppliers for a Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are required to purchase materials and inventory exclusively from Hydrodog's Approved Suppliers. Hydrodog will provide a list of approved manufacturers, suppliers, and distributors for Operating Assets and Business Materials, and this list may be modified over time based on Hydrodog's business judgment. Franchisees are prohibited from using any unauthorized suppliers without written approval from Hydrodog.
The consequences of purchasing materials and inventory from suppliers that are not on the Approved Supplier list can be severe. Specifically, doing so is grounds for default and/or termination of the Franchise Agreement. This means Hydrodog has the right to terminate the franchise agreement if a franchisee violates this requirement.
Hydrodog maintains strict control over its supply chain to ensure quality and uniformity across all franchise locations. This requirement is typical in franchising, as it protects brand standards and customer expectations. While it may limit a franchisee's autonomy in sourcing supplies, it also ensures they receive products that meet Hydrodog's specifications and contribute to the brand's reputation. Franchisees can request approval for new suppliers by submitting the supplier's information to Hydrodog for review, but Hydrodog retains the sole right to decide whether to approve the new supplier.