Does HydroDog share any rebates received from suppliers with its franchisees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates may receive rebates or other consideration from unaffiliated suppliers with respect to their sales of products or services to you or other HydroDog franchisees, whether or not the product or service is presently mentioned in this Item. We have negotiated agreements with Groomer's Choice and Evan's Apparel whereby each will pay us a 15% rebate on purchases made by our franchisees. These rebates will be retained by us to offset our costs of operating the franchise system and will not be shared with franchisees. However, as of the issuance date of this disclosure document and for our fiscal year 2024, no rebate amounts have been paid to us under these agreements, and we and our affiliates had not established any other rebate programs.
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 may receive rebates from suppliers based on franchisee purchases, but these rebates are not shared with franchisees. Specifically, HydroDog has negotiated agreements with Groomer's Choice and Evan's Apparel for a 15% rebate on franchisee purchases.
HydroDog retains these rebates to offset the costs of operating the franchise system. As of the issuance date of the FDD and for the fiscal year 2024, no rebate amounts have been paid to HydroDog under these agreements, and no other rebate programs were in place. This means that while HydroDog benefits from these negotiated rebates, franchisees do not directly receive any portion of these funds.
This arrangement is fairly common in franchising, where franchisors often negotiate supplier agreements and retain rebates to support the overall franchise system. While franchisees may not see a direct financial benefit from these rebates, the franchisor argues that these funds help maintain and improve the system, which indirectly benefits all franchisees. A prospective franchisee should consider this when evaluating the overall cost and benefits of investing in a HydroDog franchise.