What does 'owner' mean in the context of a Central Bark Doggy Day Care franchise agreement?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
. ADDITIONAL COVENANTS**
5.1 Initial Training
Under the first two Franchise Agreements we and you (or your approved Affiliates) enter into under this Agreement, we will provide initial training for up to two (2) people for you. If you are a Business Entity, we may require the trainees to include your Operating Principal, Owners, officers or representative selected by you and acceptable to, and approved by us. We shall pay no compensation for any services performed by you or your trainees in connection with the initial training course. The initial training course is more fully described in the Franchise Agreement. Other than the initial training course under the first two Franchise Agreement entered into hereunder, there shall be no additional training required for, or offered to, you or your approved Affiliate(s) under the third and subsequent Franchise Agreements signed by you or your approved Affiliates. You shall pay all lodging, travel and meals, personal expenses, salary and living expenses incurred by you, your Operating Principal, Owners, officers or representative and/or other persons attending the training with you.
5.2 Opening Assistance
Under the first two Franchise Agreements we and you (or your approved Affiliates) enter into under this Agreement, we will provide supervisory assistance and guidance in connection with the opening and initial operation of the Central Bark Facilities opened thereunder for a period of five (5) days commencing at least two (2) days prior opening such Central Bark Facilities. The opening assistance is more fully described in the Franchise Agreement. We are not obligated to provide such opening assistance under the third and subsequent Franchise Agreements signed by you or your approved Affiliate(s).
ARTICLE 6. EXECUTION OF INDIVIDUAL FRANCHISE AGREEMENTS
6.1 Execution of Lease; Opening
You may not execute any lease or purchase agreement for any Central Bark Facility until after we have delivered to you a fully-executed Franchise Agreement applicable to such Central Bark Facility. After our delivery to you of the fully-executed Franchise Agreement, your obligations to locate, lease, and construct the Central Bark Facility will be governed by the timelines stated in that Franchise Agreement, except that the deadline for opening and commencing operation of the Central Bark Facility will be the last day of the applicable Development Period.
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, the term 'owner' is referenced in several contexts related to the obligations and requirements of the franchisee, particularly if the franchisee is a Business Entity. If the franchisee is a Business Entity, Central Bark Doggy Day Care may require trainees in the initial training to include the Operating Principal, Owners, officers, or a representative selected by the franchisee and approved by Central Bark Doggy Day Care.
If the franchisee is a Business Entity, each direct and indirect owner with a twenty percent (20%) or more ownership interest in the franchisee during the term of the agreement, and their spouses, must execute a guaranty. This guaranty binds them personally, jointly, and severally, to all provisions of the agreement and any ancillary agreements between the franchisee and Central Bark Doggy Day Care. The spouse's signature acknowledges consent to the guaranty and binds the assets of the marital estate.
The actions or defaults of the owners can have direct consequences on the franchise agreement. For instance, failure of the franchisee or its owners to comply with any provision of the agreement, or default under any other agreement between the franchisee/owners and Central Bark Doggy Day Care, can result in a breach of the franchise agreement if not cured within the specified time frame. Therefore, prospective franchisees who operate as Business Entities should understand that the owners' actions and financial interests are closely tied to the franchise's compliance and performance.