Can Hydrodog revoke approval of a supplier?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We have the right to revoke approval of particular suppliers if we determine that the suppliers or their products or services no longer meet our standards. Upon receipt of written notice of revocation, you must stop buying from the disapproved supplier. In addition, if we revoke our approval of the products because they fail to meet our standards, you may be required not to use your remaining inventory of those products.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog has the authority to revoke approval of suppliers if they no longer meet the company's standards. If Hydrodog revokes approval of a supplier, franchisees must immediately stop purchasing from that supplier upon receiving written notice. Furthermore, if the revocation is due to the products failing to meet Hydrodog's standards, franchisees may be required to stop using any remaining inventory of those products.
This provision is important for prospective Hydrodog franchisees because it highlights Hydrodog's control over the supply chain and product quality. It ensures that all franchisees maintain consistent standards, which protects the brand's reputation. However, it also means that franchisees are dependent on Hydrodog's decisions regarding suppliers and product standards. Franchisees need to stay informed about any changes in approved suppliers and be prepared to adjust their purchasing practices accordingly.
This level of control over suppliers is common in franchising, as franchisors seek to maintain quality and consistency across all locations. However, it's crucial for franchisees to understand the implications of these restrictions and how they might affect their business operations. Franchisees should also inquire about the criteria Hydrodog uses to evaluate suppliers and the process for appealing a decision to revoke approval.