What must a Hydrodog franchisee do upon receiving written notice of supplier disapproval?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to revoke approval of particular suppliers if we determine that the suppliers or their products or services no longer meet our standards. Upon receipt of written notice of revocation, you must stop buying from the disapproved supplier. In addition, if we revoke our approval of the products because they fail to meet our standards, you may be required not to use your remaining inventory of those products.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if Hydrodog revokes approval of a supplier, franchisees must stop buying from the disapproved supplier upon receiving written notice of the revocation. Furthermore, if the disapproval is due to the products failing to meet Hydrodog's standards, the franchisee may be required to stop using any remaining inventory of those products.
This requirement ensures that all Hydrodog franchisees maintain consistent quality and standards across the system. By mandating the cessation of purchases from disapproved suppliers, Hydrodog aims to protect its brand reputation and customer experience. The potential requirement to discard remaining inventory of substandard products further reinforces the commitment to quality control.
For a prospective franchisee, this means they must be prepared to quickly adapt to changes in approved suppliers and potentially absorb the cost of unusable inventory if a supplier's products are deemed non-compliant. It is important for franchisees to maintain open communication with Hydrodog regarding supplier issues and to promptly comply with any directives related to supplier changes or product recalls. This also highlights the importance of only purchasing inventory from approved suppliers to minimize the risk of product disapproval and associated losses.