Can a Hydrodog franchisee use any suppliers of services, materials, or inventory that have not been previously approved by the franchisor?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ths is a material default of this Agreement, and we may terminate this Agreement for failure to open and operate HydroDog Vehicles in accordance with the Territory Development Schedule.
- 5.4 Approved Suppliers. You are required to comply with all of our System Standards for the approval and use of, or contracting with, third parties and suppliers:
- (a) Designation and Approval of Suppliers: The reputation and goodwill of HydroDog businesses are based upon, and can be maintained and enhanced only by the use of high-quality suppliers of services, materials and inventory. You cannot, at any time, use any suppliers of services, materials or inventory that we have not previously approved. We will 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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from using any suppliers of services, materials, or inventory that have not been previously approved by Hydrodog. The FDD states that the reputation of Hydrodog businesses relies on high-quality suppliers, and franchisees must adhere to the approved supplier list provided by Hydrodog, which may be modified over time.
To request approval for a new supplier, franchisees must notify Hydrodog in writing and submit any specifications, photographs, samples, or other information requested by Hydrodog concerning the potential supplier. Hydrodog will then determine within a reasonable time, not exceeding 30 calendar days, whether the supplier meets their criteria for approval. Hydrodog retains the sole right to decide if a supplier or item is authorized and may disapprove any supplier or item at their discretion.
Franchisees must use Hydrodog's approved supplier for scheduling all grooming appointments and pay the then-current monthly fee. They must also only offer and sell products and services that Hydrodog has designated or previously approved, obtaining these from designated or approved suppliers, which may include Hydrodog or its affiliates. Failure to comply with these requirements can result in default or termination of the Franchise Agreement.
This policy ensures quality control and uniformity across all Hydrodog franchises, but it also limits the franchisee's autonomy in sourcing supplies and services. Prospective franchisees should be aware of these restrictions and the potential impact on their operating costs and flexibility.