What is the consideration for signing the Hydrodog Agreement, according to the Guaranty?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
urnish such other information about your organization or formation as we may request (no ownership changes may be made without our approval);
- (e) each of your owners during the Term will sign and deliver to us our standard form of Principal Owner's Guaranty undertaking to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us, and any
amendments or modifications thereto. A copy of our current form of Principal Owners Guaranty is attached to the Franchise Disclosure Document;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, each owner of the franchise must sign a Principal Owner's Guaranty. This guaranty ensures that each owner is jointly and severally bound by all the provisions outlined in the Hydrodog Agreement and any other agreements between the franchisee and Hydrodog, including any amendments or modifications.
For a prospective Hydrodog franchisee, this means that if the franchise is owned by a business entity, each owner must personally guarantee the franchise's obligations. This is a standard practice in franchising, as it ensures that the franchisor has recourse to the personal assets of the owners if the franchise fails to meet its financial or contractual obligations. The Principal Owner's Guaranty is attached as an exhibit to the Franchise Disclosure Document.
This requirement ensures that Hydrodog can enforce the terms of the franchise agreement against the individual owners, not just the business entity. It also motivates the owners to actively manage and oversee the Hydrodog business to ensure compliance with the franchise agreement. The FDD also states that Hydrodog has approved the franchisee's request to purchase a HydroDog Business in reliance on all of the franchisee's representations.