Does the Hydrodog 'System' include suppliers?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
1.1 The HydroDog System. We, our affiliates and our predecessor have expended considerable time and effort developing retail businesses offering, on a mobile basis, pet grooming services (the "Products" and/or the "Services"), in a distinctive and innovative environment (each a "HydroDog Business"). HydroDog Businesses utilize our approved vehicles (the "HydroDog Vehicles") and operate in accordance with our standards and specifications (our "System Standards"). A key to the development, operation, franchising and success of the HydroDog Businesses is the use of our System. The "System" includes, but is not limited to, distinctive designs, layouts, color schemes and signs, equipment, inventory, marketing methods, service requirements, standards and specifications, products, inventory, and suppliers; rules; training and assistance; and other methods and procedures relating to the establishment and operation of a HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Hydrodog System includes suppliers. The FDD specifies that the 'System' encompasses various elements critical to the operation of a Hydrodog Business, including distinctive designs, layouts, equipment, inventory, marketing methods, and suppliers.
Hydrodog franchisees are required to purchase materials and inventory exclusively from Hydrodog's approved suppliers. Purchasing from non-approved suppliers can lead to default or termination of the Franchise Agreement. Hydrodog will provide a list of approved manufacturers, suppliers, and distributors for operating assets and business materials, which Hydrodog may modify over time.
Hydrodog may designate specific suppliers for certain items, potentially including Hydrodog or its affiliates as the sole approved supplier for particular products or services. While Hydrodog, its affiliates, or approved suppliers may charge mark-ups or profit margins on sales to franchisees, there is no guarantee of limiting these markups, and they can be changed at any time. Hydrodog's approval of suppliers considers factors like quality, warranty, and prices, and they may limit the number of approved suppliers to secure better pricing or more consistent quality.