Are Hydrodog franchisees required to lease from Hydrodog or its affiliates?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase or lease all HydroDog Vehicles to be used in the operation of your HydroDog Business from us, our affiliate, or our designated supplier.
If you intend to lease the vehicle for your HydroDog Business from a vendor other than our approved vendor, you are required to submit the proposed lease to us for approval prior to signing it.
We have identified a specific recommended brand and model for many of the furnishings, fixtures and equipment items required to equip a HydroDog Business. You must purchase these items only from approved suppliers, which may include us or an affiliate. We may negotiate with vendors for the price,
Currently, the purchases and leases that you must make from us or our affiliates, from approved suppliers, or according to our System Standards represent approximately 70%-100% of your total purchases and leases in establishing, and approximately 80% of your total purchases and leases in operating, your HydroDog Business.
As of the issuance date of this disclosure document, we are the only approved supplier for the Initial Tools Package. We are also an approved supplier of HydroDog Vehicles and subleases for HydroDog Vehicles.
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, franchisees are required to purchase or lease Hydrodog vehicles from Hydrodog, its affiliate, or its designated supplier. However, if a franchisee intends to lease the vehicle from a vendor other than Hydrodog's approved vendor, they must submit the proposed lease to Hydrodog for approval before signing it. This indicates that while there is a preferred source, alternative leasing options are possible with franchisor approval.
Hydrodog also designates approved suppliers for furnishings, fixtures, and equipment, which may include Hydrodog or its affiliates. Franchisees must purchase these items only from approved suppliers. Hydrodog states that the purchases and leases that franchisees must make from Hydrodog or its affiliates, from approved suppliers, or according to Hydrodog's System Standards represent approximately 70%-100% of the total purchases and leases in establishing the business, and approximately 80% of the total purchases and leases in operating the Hydrodog business.
Hydrodog retains the right to revoke approval of particular suppliers if they no longer meet Hydrodog's standards, and franchisees must stop buying from disapproved suppliers upon written notice. Hydrodog is the only approved supplier for the Initial Tools Package and is also an approved supplier of HydroDog Vehicles and subleases for HydroDog Vehicles. This gives Hydrodog significant control over the supply chain and ensures consistency across all franchise locations, but it also limits the franchisee's autonomy in sourcing equipment and vehicles.