Is purchasing inventory from a non-approved supplier a prohibited action for a Hydrodog franchisee?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
You can only purchase materials and inventory for your HydroDog Business from Approved Suppliers.
Purchasing materials and inventory from suppliers that are not Approved Suppliers is grounds for default and/or termination of this Franchise Agreement.
You agree that you will not, without our written approval, use or authorize any of your owners to use any services, material, inventory, supplies or equipment and/or suppliers, distributors, manufacturers or service providers not authorized by us for your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from purchasing materials and inventory from suppliers not approved by Hydrodog. Hydrodog provides a list of approved suppliers, which they may modify over time. Franchisees must acquire all Business Materials and Operating Assets from Hydrodog or its previously approved suppliers. If Hydrodog does not designate or approve a supplier, the franchisee must ensure the items meet Hydrodog's System Standards.
Purchasing materials and inventory from non-approved suppliers constitutes grounds for default and/or termination of the Franchise Agreement. Franchisees must obtain written approval from Hydrodog to use any services, material, inventory, supplies, or equipment from suppliers not authorized by them. Hydrodog retains the sole right to decide if any supplier, vendor, or item is authorized and may disapprove or refuse to approve any supplier, vendor, or item. Selling unauthorized products or ordering from unauthorized vendors also constitutes grounds for default and/or termination of the Agreement.
Hydrodog may designate one or more Approved Suppliers as exclusive suppliers of certain business materials, supplies, operating assets, consumer goods, fixtures, materials, and business services. Franchisees are required to comply with all System Standards for the approval and use of third-party suppliers. The reputation and goodwill of HydroDog businesses depend on the use of high-quality suppliers of services, materials, and inventory, reinforcing the importance of adhering to the approved supplier list.
Prospective Hydrodog franchisees should understand that strict adherence to the approved supplier list is essential for maintaining the franchise agreement and the quality standards of the Hydrodog brand. Any deviation from this policy could lead to serious consequences, including termination of the franchise agreement. Franchisees should also be aware that Hydrodog may receive compensation from Approved Suppliers through fees, rebates, or other considerations.