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What exhibit within the Dog Haus Franchise Agreement contains the Guarantee of Franchise Agreement?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

If the Proposed Buyer is an Entity, each owner and each owner's spouse of the Proposed Buyer shall 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.

Source: Item 22 — CONTRACTS (FDD page 87)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, the Guarantee of Franchise Agreement is found in Exhibit C of the Franchise Agreement. Specifically, if a proposed buyer of an existing Dog Haus franchise is an entity, each owner and their spouse must guarantee the buyer's obligations under the then-current Franchise Agreement. This guarantee must be in the form of Exhibit C.

This requirement ensures that Dog Haus has recourse to the personal assets of the owners if the business entity fails to meet its financial or operational obligations. This is a common practice in franchising, as it provides an additional layer of security for the franchisor.

For a prospective franchisee, this means that if they plan to operate the Dog Haus franchise through a business entity, they and their spouse will likely need to sign a personal guarantee. It is important to carefully review Exhibit C and understand the full extent of the obligations being guaranteed. Franchisees should consult with an attorney and financial advisor to fully understand the implications of signing a personal guarantee.

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.