If a Hydrodog franchisee operates as a business entity, who must sign the Principal Owner's Guaranty?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
urnish 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 or modifications thereto. A copy of our current form of Principal Owners Guaranty is attached to the Franchise Disclosure Document; and
- (f) at our request, you will furnish true and correct copies of all documents and contracts governing the rights, obligations and powers of your owners and agents (like articles of incorporation or organization and partnership, operating or shareholder agreements).
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, each owner with at least twenty percent ownership must sign a Principal Owner's Guaranty. Additionally, each such person's spouse must also sign the Owners Agreement.
This guaranty ensures that these principal owners are jointly and individually bound by the terms of the Franchise Agreement and any other agreements between the franchisee and Hydrodog. This means that Hydrodog can seek to enforce the agreement against any or all of these individuals, not just the business entity itself.
This requirement is a standard practice in franchising. It protects Hydrodog by ensuring that individuals with a significant stake in the franchise are personally liable for the business's obligations. This encourages responsible management and operation of the franchise. Prospective franchisees should carefully review the Principal Owner's Guaranty to understand the full extent of their personal liability.