What are examples of 'Business Materials' necessary for a HydroDog Business to begin or sustain operations?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 Operating Assets and Business Materials. We will identify in the Manual or through written notice to you the necessary fixtures, furnishings, equipment, hardware and software (the "Operating Assets"), as well as products, services, materials, inventory, equipment, uniforms, apparel, supplies, signs, emblems, lettering, logos, display materials, advertising, vehicle wraps, and financial and accounting services necessary for your HydroDog Business to begin or sustain operations (collectively, the "Business Materials"). We will also specify the minimum standards and specifications that must be met, and identify the approved suppliers from whom these items may be purchased or leased (which may include us and/or our affiliates). You agree to acquire all Business Materials and Operating Assets from us or suppliers we have previously approved, which may include us or our affiliates or third parties. If we do not designate or approve a supplier for the Operating Assets or Business Materials, you must purchase
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, 'Business Materials' encompass a wide array of items essential for the operation of a HydroDog Business. These include products, services, materials, inventory, equipment, uniforms, apparel, supplies, signs, emblems, lettering, logos, display materials, advertising, vehicle wraps, and financial and accounting services. Hydrodog specifies the minimum standards and specifications for these items, and franchisees are required to acquire them from Hydrodog-approved suppliers, which may include Hydrodog itself or its affiliates.
Hydrodog retains the exclusive right to mandate that franchisees purchase any 'Business Materials' that display Hydrodog's trademarks from Hydrodog or its designated suppliers. This ensures brand consistency and quality control across all HydroDog locations. While Hydrodog commits to approving suppliers whose 'Business Materials' meet established quality standards, franchisees bear the cost of obtaining and installing these required items.
Prospective Hydrodog franchisees should be aware that purchasing materials and inventory from non-approved suppliers can lead to default or termination of the franchise agreement. Franchisees must also use any ordering system designated by Hydrodog or its approved suppliers. Furthermore, Hydrodog, its affiliates, or approved suppliers may charge mark-ups/profits on the sale of business materials, operating assets, supplies, and inventory, with the flexibility to modify these margins at any time.