What does the Guaranty in the Hydrodog agreement jointly and severally guarantee to Hydrodog and its successors?

According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee operates as a business entity, any proposed owner may be required to execute an agreement guaranteeing the performance of all of the franchisee's obligations under the Franchise Agreement. This agreement ensures that the proposed owner is jointly and severally bound to comply with and guarantee the franchisee's duties. This guaranty benefits Hydrodog and its successors.

This requirement protects Hydrodog by ensuring that individuals with a significant ownership stake in the franchise are personally liable for the franchise's performance. This is a common practice in franchising, as it aligns the interests of the owners with the success of the franchise and provides an additional layer of security for the franchisor. The franchisor may request that the proposed owner execute an agreement agreeing to be bound jointly and severally by, to comply with, and to guarantee the performance of, all of your obligations under this Agreement.

For a prospective Hydrodog franchisee, this means that if you operate your franchise through a business entity, any principal owner with at least 20% ownership will likely need to sign a personal guaranty. This guaranty makes them personally responsible for the franchise's obligations under the Franchise Agreement. Therefore, it is crucial to carefully consider the implications of this guaranty and ensure that all principal owners are fully aware of their responsibilities and potential liabilities.