According to the Dog Haus Franchise Agreement, what is Exhibit C?

According to Dog Haus's 2025 Franchise Disclosure Document, Exhibit C of the Franchise Agreement is a guarantee. Specifically, if the proposed buyer of a Dog Haus franchise is an entity, each owner and each owner's spouse of the proposed buyer must jointly and severally guarantee the proposed buyer's performance of its obligations in the Then-Current Franchise Agreement under a Guarantee in the form of Exhibit C.

In simpler terms, if a franchisee wants to sell their Dog Haus location to a corporation or other business entity, the individuals who own that entity, along with their spouses, must personally guarantee that the new entity will fulfill all the obligations of the franchise agreement. This is a common practice in franchising to ensure that there is a responsible party who can be held accountable if the business entity fails to meet its obligations.

For a prospective franchisee, this means that if they plan to operate their Dog Haus franchise through a business entity and later sell it, they should be aware that the new owners (and their spouses) will be required to provide a personal guarantee. This could potentially affect the pool of potential buyers, as some individuals may be unwilling to provide such a guarantee. It is important to carefully consider this requirement when structuring the ownership of the franchise and planning for future exit strategies.