Does the Hydrodog 'System' include inventory?

According to Hydrodog's 2025 Franchise Disclosure Document, the Hydrodog System includes inventory. The FDD specifies that the 'System' encompasses various elements crucial for operating a HydroDog Business, including distinctive designs, equipment, and inventory. This means franchisees must adhere to Hydrodog's standards and specifications regarding the inventory used in their mobile pet grooming businesses.

Hydrodog franchisees are required to purchase materials and inventory exclusively from Hydrodog's approved suppliers. These suppliers are designated by Hydrodog, and franchisees risk default or termination of their franchise agreement if they purchase from non-approved sources. Hydrodog may also be the sole supplier for certain items. This ensures quality control and uniformity across all Hydrodog locations, but it also limits the franchisee's autonomy in sourcing supplies.

Hydrodog retains the right to set inventory levels and can designate specific quantities, models, and brands of inventory that franchisees must maintain. Additionally, Hydrodog, its affiliates, or approved suppliers may charge mark-ups and profit margins on the sale of inventory to franchisees, and these margins can be adjusted at any time. This gives Hydrodog significant control over the franchisee's inventory costs and potentially impacts profitability.

When Hydrodog repurchases a Hydrodog Business, they reserve the right to exclude inventory that doesn't meet their standards or isn't reasonably necessary for operation. This exclusion would affect the final purchase price, highlighting the importance of maintaining inventory according to Hydrodog's standards throughout the franchise term. Prospective franchisees should carefully consider these inventory-related requirements and costs when evaluating a Hydrodog franchise.