Is Hydrodog obligated to contribute fees or rebates received from Preferred Vendor Agreements to the Marketing Fund?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We may receive compensation from Approved Suppliers, fees, rebates or other consideration for such purchases.
Certain Preferred Vendors may require that you enter into agreements with them (subject to our approval) in connection with our designation or your use of them as a Preferred Vendor or participation in their Preferred Vendor Program ("Preferred Vendor Agreements").
You agree to do so.
We may be a party to such Preferred Vendor Agreements.
We may, but are not obligated to, contribute any such fees or rebates received by us from such agreements to the Marketing Fund.
However, with respect to such contributions to the Marketing Fund, if any, we will not be obligated to offset or reduce your obligation to pay to us Marketing Fund Fees.
If we permit you to receive any form of rebates, contributions or remunerations from Preferred Vendors, we may require that you provide to us accountings of such monies or other remuneration you receive, in the manner we designate in the Manuals.
We may charge you fees in the amount we may designate from timeto-time for participating in Preferred Vendor Programs which we evaluate or for which we
provide services. If we cancel your participation in any Preferred Vendor Program, we will direct the Preferred Vendor to stop doing business with you on the same terms as it does for other franchisees.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog may receive compensation, fees, rebates, or other consideration from Approved Suppliers due to Preferred Vendor Agreements. However, Hydrodog is not obligated to contribute these fees or rebates to the Marketing Fund. If Hydrodog does contribute any such fees or rebates to the Marketing Fund, it will not be obligated to offset or reduce a franchisee's obligation to pay Marketing Fund Fees.
Hydrodog may require franchisees to provide accountings of any rebates, contributions, or remunerations they receive from Preferred Vendors. Hydrodog may also charge franchisees fees for participating in Preferred Vendor Programs. If a franchisee's participation in any Preferred Vendor Program is canceled, Hydrodog will direct the Preferred Vendor to stop doing business with that franchisee on the same terms as it does for other franchisees.
This means that while Hydrodog benefits from negotiated agreements with suppliers, any financial gains realized from these agreements may not necessarily translate into direct benefits for franchisees through the Marketing Fund. Franchisees should be aware that they are still responsible for their full Marketing Fund Fees, regardless of any contributions Hydrodog may or may not make from its Preferred Vendor Agreements.