Does Hydrodog warrant or represent that they will limit the amount of markup/profit margin on sales to franchisees?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
We, our affiliates, or Approved Suppliers may charge a mark-ups/profits margin on the sale of business materials, operating assets, supplies, and inventory that we or they sell to you.
We, or they, do not represent or warrant in any manner whatsoever that we, or they, will limit the amount of markup/profit margin on such sales, and we, or they, may change, modify, increase, or decrease such mark-up/profit margins at any time.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog, its affiliates, or approved suppliers may charge a markup/profit margin on the sale of business materials, operating assets, supplies, and inventory to franchisees. However, Hydrodog does not warrant or represent that they will limit the amount of markup/profit margin on such sales.
This means that Hydrodog franchisees may experience fluctuations in the cost of goods and supplies necessary to operate their business. Hydrodog retains the right to change, modify, increase, or decrease such mark-up/profit margins at any time.
This policy gives Hydrodog considerable latitude in setting prices for goods sold to franchisees. While this may allow Hydrodog to respond to market conditions, it also introduces a degree of uncertainty for franchisees, who may find their costs increasing without prior notice.
Prospective franchisees should carefully consider the potential impact of these variable markups on their profitability and discuss this policy with Hydrodog during their due diligence.