Does the Dog Haus franchise agreement define 'Guarantee of Franchise Agreement'?
Dog_Haus Franchise · 2025 FDDAnswer 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.
| The undersigned (collectively, "Guarantors") have requested DOG HAUS WORLDWIDE, LLC, a |
|---|
| California limited liability company ("Franchisor"), to enter into a Franchise Agreement dated |
| , (the "Franchise Agreement") with the "Franchisee" named in the Franchise |
| Agreement. In consideration for, and as an inducement to, Franchisor's execution of the Franchise |
| Agreement, Guarantors hereby grant this guarantee (this "Guarantee") agree as follows: |
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchise agreement addresses the 'Guarantee of Franchise Agreement' in the context of a proposed buyer who is an entity. Specifically, if the proposed buyer of a Dog Haus franchise is an entity, each owner and their spouse must jointly and severally guarantee the entity's performance of its 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 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. The 'Guarantee' is triggered when a franchisee seeks to assign their franchise to a new entity.
The FDD also includes a table indicating that the guarantors request Dog Haus Worldwide, LLC to enter into a Franchise Agreement with the Franchisee named in the Franchise Agreement. In consideration for the Franchisor's execution of the Franchise Agreement, Guarantors grant the guarantee and agree to its terms.