Are there any exceptions to the requirement that HydroDog franchisees purchase from approved suppliers?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
he 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.
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 are generally required to purchase products, supplies, equipment, and services from approved suppliers to maintain system standards. However, there are a few exceptions to this rule.
First, if Hydrodog requires franchisees to use an approved supplier for a particular item, but a franchisee wishes to purchase that item from a non-approved supplier, the franchisee can submit a written request for approval of the new supplier. Hydrodog will then provide its standards and specifications to the proposed supplier, and may inspect the supplier's facilities and require product samples. The franchisee may have to pay a fee to cover Hydrodog's costs of evaluating the supplier. Hydrodog has 30 days to respond to the request, but failure to respond does not constitute approval.
Second, franchisees have the freedom to select suppliers for certain components of their computer systems, as long as these components strictly adhere to Hydrodog's standards and specifications. This exception provides some flexibility in sourcing technology needs beyond the designated point-of-sale system.
Finally, franchisees are allowed to obtain workers compensation and commercial property liability insurance from a supplier of their choosing, provided that the insurance companies meet Hydrodog's minimum rating requirements. All other insurance policies must be obtained from a Hydrodog-designated supplier. These exceptions allow franchisees some limited autonomy in selecting suppliers, while Hydrodog maintains control over key aspects of the business to ensure quality and consistency.