As a Hydrodog franchisee, which exhibit contains the form of the Principal Owner's Guaranty?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the current form of the Principal Owner's Guaranty is attached to the Franchise Agreement as Exhibit B. This guaranty is a standard form that each principal owner must sign and deliver to Hydrodog. By signing, the principal owner agrees to be bound jointly and severally by all provisions of the Franchise Agreement and any other agreements between the franchisee and Hydrodog, including any amendments or modifications.
This requirement ensures that Hydrodog has recourse to the personal assets of the principal owners should the franchise business fail to meet its obligations. The Principal Owner's Guaranty is a legally binding document, and franchisees should carefully review it with their legal counsel to understand the full extent of their obligations and potential liabilities.
For a Hydrodog franchisee, this means that if the business is operated as a corporation, LLC, or partnership, the individuals with significant ownership (at least 20%) must personally guarantee the franchise's obligations. This is a common practice in franchising, as it provides the franchisor with an additional layer of security and ensures that the owners are personally invested in the success of the business.