factual

If the Canine Dimensions franchisee is a legal entity, who must sign the Guaranty and Assumption of Obligations?

Canine_Dimensions Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 4.7.5 Each owner of an interest in Franchisee must execute and return to Franchisor the "Guaranty and Assumption of Obligations," attached as "Schedule D."

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 27)

What This Means (2025 FDD)

According to Canine Dimensions' 2025 Franchise Disclosure Document, if the franchisee is a legal entity, each owner of an interest in the franchisee must execute and return the "Guaranty and Assumption of Obligations" to Canine Dimensions. This document is attached as Schedule D to the Franchise Agreement.

This requirement means that if you form a corporation, LLC, or other legal entity to operate your Canine Dimensions franchise, every individual who owns any portion of that entity must personally guarantee the obligations of the franchise agreement. This is a common practice in franchising, as it ensures that Canine Dimensions has recourse to the personal assets of the owners if the business entity fails to meet its financial or contractual obligations.

By requiring all owners to sign the Guaranty and Assumption of Obligations, Canine Dimensions aims to secure the commitment of all individuals with a financial stake in the franchise. This measure is designed to protect Canine Dimensions' interests and ensure the franchisee's adherence to the terms of the franchise agreement. Prospective franchisees should carefully review Schedule D and understand the full extent of their personal liability before signing the agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.