What is the definition of 'Approved Suppliers' in the Hydrodog Franchise Agreement?
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.
- (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; (ii) submit to us sufficient specifications, photographs, samples and/or other information requested by us concerning such type, model, brand, service, service provider and/or supplier, manufacturer or distributor.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Approved Suppliers are manufacturers, suppliers, or distributors of Operating Assets and Business Materials that Hydrodog has approved. Hydrodog may modify this list over time based on their business judgment. These suppliers, providers, distributors, or manufacturers are designated for specific types, models, or brands of business materials, inventory, Operating Assets, and other equipment and business services that Hydrodog approves for HydroDog Businesses, as outlined in the Manuals. Hydrodog, or its affiliates, may be the sole approved supplier for certain items or services.
Hydrodog franchisees are required to purchase materials and inventory exclusively from Approved Suppliers. Purchasing from non-approved suppliers can lead to default or termination of the Franchise Agreement. Franchisees must also use any ordering system designated by Hydrodog, its affiliates, or Approved Suppliers. Hydrodog, its affiliates, or Approved Suppliers may charge mark-ups and profit margins on the sale of business materials, operating assets, supplies, and inventory, and these margins can be changed at any time without notice.
Hydrodog communicates its approval of Operating Assets, Business Materials, and Approved Suppliers through specifications and standards in its Manuals or other communications. When approving suppliers, manufacturers, distributors, or service providers, Hydrodog considers factors such as quality, warranty, and prices. Hydrodog may limit the number of approved suppliers to obtain lower prices or ensure more uniform and higher quality materials. Franchisees are required to comply with all System Standards for the approval and use of third-party suppliers and cannot use any suppliers that have not been previously approved by Hydrodog.