According to the Hydrodog FDD, what is the name of the document attached as Exhibit B?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) each of your Principal Owners, during the term of this Agreement, will sign and deliver to us our standard form of Principal Owner's Guaranty ("Owner's Guaranty") undertaking to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us. A copy of our current form of Principal Owner's Guaranty is attached as an Exhibit B to the Franchise Disclosure Document.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog FDD, Exhibit B is a copy of the "Principal Owner's Guaranty" form. This form is a standard agreement that each principal owner must sign and deliver to Hydrodog. The guaranty ensures that the owners are jointly and severally bound by all provisions of the Franchise Agreement and any other agreements between the franchisee and Hydrodog.
This requirement has significant implications for franchisees who operate as a business entity, such as a corporation or LLC. Any individual with at least a 20% ownership interest in the franchisee's business must sign the Principal Owner's Guaranty. This means that these individuals are personally liable for the franchisee's obligations under the Franchise Agreement.
The Principal Owner's Guaranty is a common practice in franchising, as it provides the franchisor with an additional layer of security. By requiring personal guarantees from the owners, Hydrodog aims to ensure that the franchisee is fully committed to the business and complies with the terms of the Franchise Agreement. Prospective franchisees should carefully review the Principal Owner's Guaranty with their legal counsel to understand the full extent of their personal liability.