What standards must a HydroDog franchisee adhere to in order to maintain high operational standards?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ND SERVICES**
System Standards
To protect our reputation and goodwill and to maintain high standards of operation under the System, you must operate the HydroDog Business in strict conformance with our System standards, including the methods, standards, and specifications we prescribe from time to time in the Manual or otherwise in writing. The System standards may relate to any aspect of the appearance, function, cleanliness, and operation of the HydroDog Business.
Suppliers
You must purchase the products, supplies, equipment, and services that you use or sell in the HydroDog Business in accordance with our specifications and quality standards and, if applicable, only from suppliers we have designated or approved (which may include us or our affiliates). You will at all times maintain a complete inventory of approved items and supplies necessary for operating your HydroDog Business and providing services to customers.
If we require you to use an approved supplier for a particular item, but you wish to purchase the item from a supplier that we have not approved, you may submit a written request for approval of the supplier, unless it is an item for which we have designated a particular vendor as the source for the particular product or service. We will provide our standards and specifications to you or to the proposed supplier, subject to the supplier's execution of a confidentiality agreement in a form acceptable to us. We have the
right to inspect the proposed supplier's facilities and to require delivery of product samples either to us or to an independent laboratory designated by us for testing. You may be required to pay a fee, which will not exceed our reasonable costs incurred in evaluating the supplier, regardless of whether or not we approve the supplier. You may not purchase, sell, or offer for sale any products or services of the proposed supplier until you receive our written approval of the proposed supplier. We will notify you of approval or disapproval of the proposed supplier within 30 days after receiving your request and completion of evaluation and testing, if required. Our failure to respond within this timeframe shall not constitute approval of the proposed supplier. You may not sell or offer for sale any products or services of the proposed supplier until you receive our written approval.
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.
As of the issuance date of this disclosure document, we are the only approved supplier for the Initial Tools Package. We are also an approved supplier of HydroDog Vehicles and subleases for HydroDog Vehicles. We reserve the right to designate ourselves as an approved supplier, or as the only approved supplier, for additional particular products and services in the future.
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.
Except for Legacy Franchisors, LLC, none of our officers or directors owns an interest in any suppliers of products or services to our franchisees. In our last fiscal year, we and our affiliates did not receive any rebates or payments from approved suppliers on account of franchisee purchases or leases of required and approved items from those suppliers.
There currently are no purchasing or distribution cooperatives for the System. We and our affiliates negotiate purchase arrangements with suppliers (including price terms) for the benefit of our franchisees and our affiliates for the items and services that you may obtain only from approved suppliers. In doing so, we and our affiliates seek to promote the overall interests of the HydroDog Businesses system. We do not provide material benefits to you (for example, renewal or granting additional franchises) based on your purchase of particular products or services or use of particular suppliers.
Lease
If you intend to lease the vehicle for your HydroDog Business from a vendor other than our approved vendor, you are required to submit the proposed lease to us for approval prior to signing it.
Furnishings, Fixtures and Equipment
We have identified a specific recommended brand and model for many of the furnishings, fixtures and equipment items required to equip a HydroDog Business. You must purchase these items only from approved suppliers, which may include us or an affiliate. We may negotiate with vendors for the price,
warrantees, guarantees, delivery costs, maintenance contracts, etc. We do not represent that we will be able to obtain for you the lowest costs or best terms available.
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, franchisees must operate their HydroDog business in strict accordance with the system standards. These standards are detailed in the manual and other written communications from Hydrodog, and they cover all aspects of the business, including its appearance, function, cleanliness, and overall operation. This ensures uniformity and quality across all Hydrodog locations, protecting the brand's reputation.
To maintain these standards, Hydrodog franchisees are required to purchase products, supplies, equipment, and services that meet Hydrodog's specifications and quality standards. These items must be bought from designated or approved suppliers, which may include Hydrodog or its affiliates. Franchisees must maintain a complete inventory of approved items to ensure they can properly operate their business and serve customers. If a franchisee wishes to use a non-approved supplier, they can submit a written request for approval, although this is not applicable for items where Hydrodog has already designated a specific vendor. Hydrodog has the right to inspect the proposed supplier's facilities and require product samples for testing, with the franchisee potentially bearing the costs of evaluation. Approval or disapproval will be communicated within 30 days of the request and completion of evaluation.
Hydrodog franchisees are also obligated to purchase or lease HydroDog Vehicles from Hydrodog, its affiliate, or a designated supplier. Similarly, the point-of-sale system and certain other computer system components must be acquired from designated suppliers, while other components must still adhere to Hydrodog's standards and specifications. Furthermore, franchisees must procure and maintain specific insurance coverage, including general liability ($1,000,000/$2,000,000) with pet groomer professional liability coverage, animal bailee ($5,000), commercial automobile ($1,000,000) with uninsured motorist coverage, and worker's compensation where necessary. All insurance policies, except workers' compensation and commercial property liability, must include Hydrodog as an additional insured and be written by insurance companies with a rating of A-VIII or better, according to A.M. Best's Insurance Report.
Adherence to these standards is critical, as Hydrodog retains the right to revoke approval of suppliers if their products or services no longer meet Hydrodog's standards. Franchisees must cease purchasing from disapproved suppliers upon written notice, and they may be required to discontinue using any remaining inventory of those products. Currently, purchases and leases made from Hydrodog, its affiliates, or approved suppliers, or according to Hydrodog's System Standards, account for approximately 70%-100% of the franchisee's total purchases and leases during establishment and about 80% during operation. This high percentage underscores the importance of maintaining compliance with Hydrodog's standards to ensure consistent quality and protect the brand's integrity.