Who must execute a written guarantee for a Dog Haus franchise if the franchisee is an entity?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are an entity, all present and future owners of the equity or your voting rights, including spouses (and family members who live in the same household, excluding minor children) must execute a written guarantee in a form we prescribe, personally, irrevocably and unconditionally guaranteeing, jointly and severally, with all other guarantors, the full payment and performance of your obligations to us and to our affiliate. Upon each transfer or assignment of your interest in your Franchise Agreement, or other change in your ownership interests, and at any other time we request, these holders must re-execute a written guarantee in a form we prescribe.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 61–62)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, if the franchisee is an entity, all present and future owners of the equity or voting rights must execute a written guarantee. This requirement also extends to their spouses and family members who live in the same household, excluding minor children. These individuals must personally, irrevocably, and unconditionally guarantee the full payment and performance of the franchisee's obligations to Dog Haus and its affiliates, jointly and severally with all other guarantors.
This guarantee must be in a form prescribed by Dog Haus. Furthermore, upon each transfer or assignment of the franchisee's interest in the Franchise Agreement, or any other change in ownership interests, these holders must re-execute a written guarantee in the required form. This ensures that Dog Haus has a continuous and reliable guarantee of the franchisee's obligations throughout the term of the agreement and any subsequent transfers.
For a prospective Dog Haus franchisee, this means that if you plan to operate the franchise through a corporation, LLC, or other business entity, you, your co-owners, your spouses, and adult family members living with you will all be required to sign a personal guarantee. This is a significant commitment, as it puts your personal assets at risk if the franchise fails to meet its financial obligations to Dog Haus. It is a common practice in franchising to require personal guarantees, especially from entities, to ensure accountability and financial stability.