What items are referenced in Item 8 and 9 regarding restrictions on what a Hydrodog franchisee may sell?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ners to sign a Principal Owner's Guaranty.
ITEM 16 RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL
You must offer for sale all products, and perform all services, that we require from time to time for HydroDog Businesses. We reserve the sole right to decide if any supplier, vendor or item is authorized and reserve the right to disapprove or refuse to approve any supplier, vendor or item. You are not permitted, without our prior written approval, to use any inventory or order from any suppliers or vendors that have not been authorized by us. Under no circumstances may you offer for sale any products or perform any services that we have not previously authorized (See Items 8 and 9). Our System Standards also regulate required or authorized products, product categories and supplies. Pursuant to our System Standards, franchisees may not directly contact our or our affiliates' suppliers or vendors. Offering or selling products or inventory that has not been approved by us is grounds for termination of the Franchise Agreement. We have the right to change the types of required and/or authorized goods and services from time to time.
You may serve customers from any location, except that you may not market outside your Territory. We reserve the right to restrict or prohibit your use of Alternative Channels of Distribution. To the extent permitted by applicable law, we may establish maximum and minimum retail prices.
You are obligated to comply with all modifications to System Standards, other than capital modifications, within the time period we specify. There is no limit on this obligation.
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
This table lists certain important provisions of the franchise and related agreements. You should read these provisions in the agreements attached to this disclosure document.
| Provisions | Other Agreement | Summary |
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Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD pages 35–36)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Item 16 and other sections outline restrictions on what franchisees can sell. Specifically, franchisees must offer all products and services that Hydrodog requires. Hydrodog retains the sole right to decide if any supplier, vendor, or item is authorized and can disapprove any of these. Franchisees are not allowed to use any unauthorized inventory or order from unapproved suppliers without prior written approval from Hydrodog.
The FDD states that franchisees cannot offer for sale any products or perform any services that Hydrodog has not previously authorized, referencing Items 8 and 9. The System Standards also regulate required or authorized products, product categories, and supplies. Franchisees are prohibited from directly contacting Hydrodog's or its affiliates' suppliers or vendors. Selling unapproved products or inventory can lead to termination of the Franchise Agreement. Hydrodog reserves the right to change the types of required and/or authorized goods and services.
To maintain quality and standards, franchisees must purchase products, supplies, equipment, and services according to Hydrodog's specifications and only from designated or approved suppliers, which may include Hydrodog or its affiliates. Franchisees must maintain a complete inventory of approved items and supplies. If a franchisee wants to use a non-approved supplier for a particular item, they can submit a written request for approval, unless Hydrodog has designated a specific vendor as the sole source. Hydrodog can inspect the proposed supplier's facilities and require product samples for testing, with the franchisee potentially bearing the evaluation costs.
Hydrodog can revoke approval of suppliers if their products or services no longer meet Hydrodog's standards, and franchisees must stop buying from disapproved suppliers. As of the FDD's issuance date, 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. Hydrodog reserves the right to designate itself as the only approved supplier for additional products and services in the future. Franchisees must only offer and sell the Products and Services and other items Hydrodog has designated or previously approved for sale at their HydroDog Business and agree to obtain such designated or approved Products and Services from designated or approved suppliers, that may include only Hydrodog or its affiliates.