What form does Hydrodog require for the Principal Owner's 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; and
- (f) at our request, you will furnish true and correct copies of all documents and contracts governing the rights, obligations and powers of your owners and agents (like articles of incorporation or organization and partnership, operating or shareholder agreements).
- (g) a Principal Owner of your HydroDog Business Entity (defined as a person with at least a twenty percent (20%) ownership interest in you) must: (i) have management responsibility and authority over the "Business" (defined as your HydroDog Business) on a day-to-day basis; (ii) be actively employed on a full-time basis to manage your HydroDog Business's operations; (iii) be present at your HydroDog Business for at least fifty percent (50%) of the hours your HydroDog Business is open to the public for business; (iv) be bound by our then-current form of Confidentiality Agreement (or other form satisfactory to us); and (v) satisfactorily complete our initial training program and any other training programs we request during the Term;
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, each principal owner must sign and deliver Hydrodog's standard form of Principal Owner's Guaranty. This guaranty ensures that the principal owner is jointly and severally bound by all provisions of the Franchise Agreement and any other agreements between the franchisee and Hydrodog, including any amendments or modifications. A principal owner is defined as someone with at least a 20% ownership interest in the Hydrodog business entity.
The purpose of the Principal Owner's Guaranty is to ensure that Hydrodog can hold the principal owners of a franchisee business entity directly responsible for the franchisee's obligations. This is a common practice in franchising, as it provides an additional layer of security for the franchisor. By signing the guaranty, the principal owner agrees to be personally liable for the franchisee's debts and obligations to Hydrodog.
The FDD specifies that a copy of Hydrodog's current form of Principal Owner's Guaranty is attached to the Franchise Disclosure Document as Exhibit B. This allows prospective franchisees and their principal owners to review the specific terms and conditions of the guaranty before entering into a franchise agreement. Franchisees should carefully review this document with their legal counsel to fully understand the obligations and liabilities they are undertaking.