If the Hydrodog franchisee is an entity, what ownership statement is required?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.13 Management. If you are an entity, you are required to complete and update, as necessary, the statement of ownership attached hereto as Attachment B throughout the term of this Agreement, and to provide us with a copy of any such updates within thirty (30) days of making them. Your HydroDog Business shall be managed by you, or if you are an entity, by one of your shareholders, partners, or members who is a natural person, holding at least a ten percent (10%) interest in the franchisee entity, and who is designated in writing to us as the person to make all decisions for the franchisee entity and to be principally responsible for communicating with us about your HydroDog Business ("Designated Owner"). Under certain circumstances we may allow you to appoint a designated manager ("General Manager") to run the day-to-day operations of your Franchised Business; the General Manager need not have an ownership interest in the franchisee entity. In addition, if you are an entity, all persons who own twenty percent (20%) or more of the beneficial ownership interests in the entity and each such person's respective spouse shall personally and unconditionally guaranty franchise owner's performance under this Agreement by signing the Owners Agreement attached hereto as Attachment D. The Designated Owner shall have the authority to speak for and bind the franchise owner in all matters pertaining to this Agreement, and all matters relating to your HydroDog Business.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if a franchisee is a business entity, they must complete and update the statement of ownership (Attachment B) throughout the term of the Franchise Agreement. They must also provide Hydrodog with a copy of any updates within 30 days of making them.
Furthermore, Hydrodog requires that the business be managed by a shareholder, partner, or member who is a natural person with at least a 10% interest in the franchisee entity. This person must be designated in writing to Hydrodog as the decision-maker and the primary contact for communication regarding the Hydrodog business. This individual is referred to as the "Designated Owner."
In addition, all individuals owning 20% or more of the beneficial ownership interests in the entity, along with their respective spouses, must personally and unconditionally guarantee the franchisee's performance under the Franchise Agreement by signing the Owners Agreement (Attachment D). The Designated Owner has the authority to represent and bind the franchisee in all matters pertaining to the Franchise Agreement and the Hydrodog business.
These requirements ensure that Hydrodog has clear lines of communication and accountability within the franchisee's business entity, and that key individuals are personally invested in the success and compliance of the franchise.