What is the maximum fee a Hydrodog franchisee may be required to pay for supplier evaluation?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If we require you to use an approved supplier for a particular item, but you wish to purchase the item from a supplier that we have not approved, you may submit a written request for approval of the supplier, unless it is an item for which we have designated a particular vendor as the source for the particular product or service. We will provide our standards and specifications to you or to the proposed supplier, subject to the supplier's execution of a confidentiality agreement in a form acceptable to us. We have the
right to inspect the proposed supplier's facilities and to require delivery of product samples either to us or to an independent laboratory designated by us for testing. You may be required to pay a fee, which will not exceed our reasonable costs incurred in evaluating the supplier, regardless of whether or not we approve the supplier. You may not purchase, sell, or offer for sale any products or services of the proposed supplier until you receive our written approval of the proposed supplier. We will notify you of approval or disapproval of the proposed supplier within 30 days after receiving your request and completion of evaluation and testing, if required. Our failure to respond within this timeframe shall not constitute approval of the proposed supplier. You may not sell or offer for sale any products or services of the proposed supplier until you receive our written approval.
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, a franchisee may be required to pay a fee to evaluate a supplier they wish to use but who is not already an approved supplier. This fee will not exceed Hydrodog's reasonable costs incurred in evaluating the supplier. This evaluation may include inspecting the supplier's facilities or requiring product samples for testing, either by Hydrodog or an independent laboratory. Hydrodog will provide its standards and specifications to the potential supplier, contingent upon the supplier signing a confidentiality agreement.
Hydrodog commits to notifying the franchisee of approval or disapproval within 30 days after receiving the request and completing the evaluation and testing, if required. However, Hydrodog's failure to respond within this timeframe does not constitute approval. The franchisee cannot purchase, sell, or offer for sale any products or services from the proposed supplier until they receive written approval from Hydrodog.
This policy ensures that Hydrodog maintains consistent quality and standards across all franchise locations by controlling the supply chain. While the FDD does not specify a fixed dollar amount for the supplier evaluation fee, it does state that the fee will not exceed Hydrodog's reasonable costs. This implies that the fee can vary depending on the complexity and extent of the evaluation required for the proposed supplier. Prospective franchisees should inquire with Hydrodog about the typical range of these evaluation costs to better understand potential expenses.