What is a 'Preferred Vendor' in the context of a Hydrodog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
for participation in or termination of Preferred Vendor Programs ("Program Rules"). We can refuse or terminate your participation in Preferred Vendor Programs without terminating this Agreement. We may designate one or more Approved Suppliers ("Preferred Vendors") as an exclusive supplier of types, models or brands of business materials, supplies, operating assets, consumer goods, fixtures or materials and business services that we approve for the HydroDog Businesses. 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.
- 5.5 Sale of the Products and Services. In the sale of the Product and Services to consumers, you are not permitted to distribute the Product or Services in any manner that we have not approved in writing or combine the Product or Services with any other product or service without our prior written approval, which we may grant, withhold, or revoke in our sole and absolute discretion.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, a 'Preferred Vendor' is an Approved Supplier designated by Hydrodog as an exclusive supplier of business materials, supplies, operating assets, consumer goods, fixtures, materials, or business services that Hydrodog approves for its businesses. Hydrodog may receive compensation from these Approved Suppliers in the form of fees, rebates, or other considerations for franchisee purchases.
Hydrodog franchisees may be required to enter into agreements with these Preferred Vendors, subject to Hydrodog's approval. Hydrodog may also be a party to these agreements. While Hydrodog may contribute fees or rebates received from these agreements to the Marketing Fund, it is not obligated to reduce a franchisee's Marketing Fund Fees. If a franchisee receives any form of rebates or remuneration from Preferred Vendors, Hydrodog may require accountings of such monies.
Hydrodog retains the right to develop, modify, and terminate Preferred Vendor Programs, and franchisees must adhere to Hydrodog's policies and procedures regarding participation in these programs. Hydrodog can also refuse or terminate a franchisee's participation in these programs without terminating the Franchise Agreement. Franchisees are not allowed to source items or inventory from suppliers or vendors not expressly authorized by Hydrodog, and violating this rule can lead to default or termination of the agreement.