Must a Hydrodog franchisee use accounting service suppliers approved by the franchisor?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.7 Business Management System.
You are required to use and adhere to all of the rules and regulations, specifications and System Standards for the Computer System, mapping, business management, Purchase Order System, scheduling, cost control, and accounting system we designate from time-to-time (collectively, the "Business Management System").
You must utilize the Computer System, if any, which we may designate or approve, in the manner we approve in your utilization of the Business Management System.
You must use our standard supplier or vendor agreements and other agreements related to the Business Management System that we designate from time-to-time.
The Business Management System may or will incorporate and consist of such functions as we designate from time-totime, which may include a mandatory Purchase Order System and rules for participation and use of such Purchase Order System, if any, which we may designate (the "Purchase Order System").
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 adhere to the franchisor's designated accounting system. Specifically, Hydrodog franchisees must use and adhere to all rules, regulations, specifications, and System Standards for the Computer System, mapping, business management, Purchase Order System, scheduling, cost control, and accounting system that Hydrodog designates from time to time, collectively referred to as the "Business Management System."
This Business Management System may incorporate functions designated by Hydrodog, potentially including a mandatory Purchase Order System with specific rules for participation and use. Franchisees are also obligated to use Hydrodog's standard supplier or vendor agreements and other agreements related to the Business Management System as designated by Hydrodog.
In practice, this means that a Hydrodog franchisee must utilize the specific accounting system, software, and potentially even the specific accounting service providers that Hydrodog mandates. This requirement ensures uniformity and control over financial reporting within the Hydrodog franchise system, allowing the franchisor to monitor performance and maintain brand consistency. Failure to comply with these requirements could lead to a breach of the franchise agreement.