May Hydrodog receive compensation from Approved Suppliers?
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
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 from Approved Suppliers. The FDD states that Hydrodog may receive fees, rebates, or other consideration from Approved Suppliers for franchisee purchases. This arrangement is part of Hydrodog's Preferred Vendor Programs.
Hydrodog has the option to contribute these fees or rebates to the Marketing Fund, but they are not obligated to do so, nor will they reduce a franchisee's Marketing Fund Fees obligation even if they do contribute. If Hydrodog allows franchisees to receive rebates or other payments from Preferred Vendors, they may require franchisees to provide an accounting of these monies in a manner designated in the manuals.
Hydrodog may also charge franchisees fees for participating in Preferred Vendor Programs, especially those that Hydrodog evaluates or provides services for. If a franchisee's participation in a Preferred Vendor Program is canceled, Hydrodog will instruct the Preferred Vendor to cease doing business with the franchisee under the same terms as it does with other franchisees. This system allows Hydrodog to potentially profit from the purchasing activities of its franchisees through negotiated benefits with suppliers.