If the Hydrodog franchisee is an entity, who must personally guarantee the debt?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
| Parameter | Initial Franchise Fee and for additional territories |
|---|---|
| Item Financed (1) | Up to 50% of the Initial Franchise Fee |
| Source of Financing | Us |
| Down Payment | $20,000 |
| Amount Financed | Up to 50% |
| Interest Rate/Finance Charge | 8% per annum (including finance charges) |
| Period of Repayment | 60 months |
| Security Required | Personal Guarantee |
| Whether a Person Other than the Franchisee Must Personally Guarantee the Debt (2) | If the franchisee is an entity, its owners must personally guarantee the debt |
| Prepayment Penalty | None |
| Liability Upon Default | Accelerated obligation to pay the entire amount due, pay our court costs and attorney fees incurred in collecting the debt, and termination of the franchise. |
| Waiver of Defenses or Other Legal | Waiver of right to a jury trial; homestead and other exemptions; |
| Rights | waiver of presentment, demand, protest, notice of dishonor. |
| Intent to Sell (3) | There is no intent to sell, assign or factor the debt to a third party. |
| Consideration for placement of | None |
| financing (4) |
Source: Item 10 — FINANCING (FDD page 22)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if the franchisee is a business entity, the owners of the entity must personally guarantee the debt. This requirement is part of the financing terms offered by Hydrodog for up to 50% of the initial franchise fee.
This personal guarantee means that if the franchisee entity defaults on its financing obligations, Hydrodog can pursue the personal assets of the entity's owners to recover the debt. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case of default. The security required for the financing is a personal guarantee.
Hydrodog's financing includes an annual interest rate of 8% and a repayment period of 60 months. Defaulting on the loan results in an accelerated obligation to pay the entire amount due, covering Hydrodog's court costs and attorney fees, and potential termination of the franchise agreement. Hydrodog does not intend to sell, assign, or factor the debt to a third party.