What constitutes grounds for default or termination of the Hydrodog Franchise Agreement regarding suppliers?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
r 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.
- (c) Changes to Approved Suppliers. If you wish to use any type, model, manufacturer or brand of materials, supplies or equipment, supplier, manufacturer or distributor of equipment, supplies or material, any service provider or any other brand, manufacturer, distributor or supplier of materials, supplies, services or equipment, which is not currently approved by us, you are required to: (i) notify us in writing;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, purchasing materials and inventory from suppliers that are not approved by Hydrodog is grounds for default and/or termination of the Franchise Agreement. Franchisees are required to purchase materials and inventory only from Hydrodog's Approved Suppliers. Franchisees are not permitted to offer for sale any item or order inventory from any suppliers or vendors that have not been expressly authorized by Hydrodog. Selling unauthorized products or ordering from unauthorized vendors is also grounds for default and/or termination of the Agreement.
Hydrodog will provide franchisees with a list of approved manufacturers, suppliers, or distributors of Operating Assets and Business Materials, which Hydrodog may modify from time to time. If a franchisee wishes to use a supplier that is not currently approved, they must notify Hydrodog in writing and submit all information requested by Hydrodog concerning the supplier. Hydrodog will then determine, within a reasonable time not to exceed thirty (30) calendar days, whether the supplier meets their criteria for approval.
Hydrodog reserves the right to develop, modify, and terminate certain programs and terms under which Hydrodog, its affiliates, or the Hydrodog Businesses receive certain negotiated benefits or terms from Approved Suppliers ("Preferred Vendor Programs"). Franchisees must follow all of Hydrodog's policies and procedures for participation in or termination of Preferred Vendor Programs. Hydrodog can refuse or terminate a franchisee's participation in Preferred Vendor Programs without terminating the Franchise Agreement.