Does Hydrodog guarantee a franchisee's notes, leases, or financial obligations?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
Notes:
-
- We may, at our sole discretion, provide financing to you. We do not require that anyone other than you personally guarantee the note.
-
- We do not guarantee your notes, leases, or financial obligations.
-
- We do not have any past or present practice to sell, assign, or discount to any third party, any note, contract, or other instrument signed by you, but we reserve the right to do so.
-
- We do not receive any direct or indirect payments or other consideration for placing financing.
Except as stated above, we do not offer direct or indirect financing. We do not guarantee your note, lease or other obligation.
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog does not guarantee a franchisee's notes, leases, or financial obligations. This means that franchisees are solely responsible for fulfilling the terms of any loans, leases, or other financial commitments they enter into to establish and operate their Hydrodog franchise.
This lack of guarantee is a standard practice in franchising. Franchisees should carefully review all financial obligations and seek professional advice to ensure they can meet their commitments. The FDD also indicates that Hydrodog may provide financing for up to 50% of the initial franchise fee, with the franchisee providing a $20,000 down payment. This financing carries an 8% annual interest rate and requires a personal guarantee, potentially from the owners if the franchisee is an entity. However, this financing does not change the fact that Hydrodog itself will not act as a guarantor for the franchisee's other debts.
Prospective Hydrodog franchisees should understand that they are fully liable for their financial obligations. If a franchisee defaults on a loan, they are responsible for the accelerated obligation to pay the entire amount due, as well as Hydrodog's court costs and attorney fees incurred in collecting the debt. Additionally, defaulting on financial obligations can lead to termination of the franchise agreement. Therefore, franchisees must have a solid financial plan and be prepared to manage their debts responsibly.