Under the Dog Haus Guarantee, what is the Guarantors' responsibility regarding the Franchisee's obligations to Dog Haus Worldwide, LLC?

Based on the 2025 Dog Haus Franchise Disclosure Document, the Guarantors agree to guarantee the Franchise Agreement between the Franchisee and Dog Haus Worldwide, LLC. The Guarantors have requested Dog Haus to enter into a Franchise Agreement with the Franchisee, and in consideration for Dog Haus's execution of the Franchise Agreement, the Guarantors grant this guarantee.

This means that the Guarantors are taking on a responsibility to ensure that the Franchisee fulfills their obligations under the Franchise Agreement. This is a common practice in franchising, especially when the Franchisee is a business entity (like a corporation or LLC) rather than an individual. The franchisor, Dog Haus in this case, wants to have assurance that someone with sufficient assets is ultimately responsible for the financial and operational obligations of the franchise.

For a prospective Dog Haus franchisee, this implies that if they are not directly entering the agreement as an individual, they will need to find someone (or multiple people) willing to act as a guarantor. This guarantor would likely need to demonstrate financial stability and be willing to be held liable if the franchise fails to meet its obligations to Dog Haus. The specific terms and conditions of the guarantee would be detailed in the Guarantee document (Exhibit C), which should be carefully reviewed by both the franchisee and the guarantor.