What are 'Preferred Vendor Programs' for Hydrodog franchisees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Preferred Vendor Programs: We reserve the right to develop, modify, and terminate certain programs and terms under which we, our affiliates or the HydroDog Businesses receive certain negotiated benefits or terms from Approved Suppliers ("Preferred Vendor Programs").
You must follow all of our policies and procedures which we designate from time-to-time 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.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Preferred Vendor Programs are programs under which Hydrodog, its affiliates, or Hydrodog businesses receive negotiated benefits or terms from approved suppliers. Hydrodog reserves the right to develop, modify, and terminate these programs.
Hydrodog may designate certain approved suppliers as exclusive providers of business materials, supplies, operating assets, consumer goods, fixtures, materials, and business services. Franchisees are required to adhere to Hydrodog's policies and procedures regarding participation in or termination of these programs, referred to as "Program Rules." Hydrodog can refuse or terminate a franchisee's participation in these programs without terminating the franchise agreement itself.
Hydrodog may receive compensation from these approved suppliers in the form of fees, rebates, or other considerations related to franchisee purchases. Certain preferred vendors may also require franchisees to enter into separate agreements, subject to Hydrodog's approval, to participate in the Preferred Vendor Program. Hydrodog may also charge franchisees fees for participating in these programs or for services it provides in evaluating them. If Hydrodog cancels a franchisee's participation in a program, it will instruct the preferred vendor to cease doing business with the franchisee under the same terms as other franchisees.