When must holders re-execute a written guarantee for a Dog Haus franchise?
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, including spouses and family members (excluding minor children) living in the same household, must execute a written guarantee. This guarantee ensures the full payment and performance of the franchisee's obligations to Dog Haus and its affiliates.
The holders must re-execute this written guarantee in a form prescribed by Dog Haus under specific circumstances. These circumstances include each transfer or assignment of the franchisee's interest in the Franchise Agreement, any other change in the ownership interests, or at any other time Dog Haus requests.
This requirement ensures that Dog Haus has a current and enforceable guarantee from the individuals who have a financial stake in the franchise. This protects Dog Haus in case of default or non-performance by the franchisee. For a prospective franchisee, this means understanding that changes in ownership or equity will trigger the need to re-execute the guarantee, and failure to do so could result in a breach of the franchise agreement.