If I sign a Hydrodog franchise agreement, will I also be required to sign a Principal Owner's Statement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a Business Entity, your owners must not only personally guarantee your obligations under the Franchise Agreement, but also agree to be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement. This includes both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities. The form of "Principal Owner's Guaranty" is attached as Exhibit "B" to the Franchise Agreement. We require you to complete a "Principal Owner's Statement" in the form attached as Exhibit "D," which describes all of your owners and their interests in you. You are required to identify one of your owners as having authority to communicate with us and enter into agreements with us on your behalf. We do not require the spouses of any owners to sign a Principal Owner's Guaranty.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, if you operate your Hydrodog franchise as a business entity, you are required to complete a Principal Owner's Statement. This statement, in the form attached as Exhibit "D" to the Franchise Agreement, must accurately describe all owners and their respective interests in the business. Furthermore, you must designate one owner with the authority to communicate and enter agreements with Hydrodog on behalf of the business.
Principal owners not only must personally guarantee the obligations under the Franchise Agreement, but also agree to be personally bound by every provision of the Franchise Agreement. This includes both monetary obligations and obligations to take or refrain from taking specific actions. The Principal Owner's Guaranty is attached as Exhibit "B" to the Franchise Agreement.
Hydrodog also stipulates that a Principal Owner, defined as someone with at least 20% ownership, must have management responsibility, be actively involved full-time in managing the business, be present for at least 50% of the business hours, be bound by a Confidentiality Agreement, and complete the initial training program. These requirements ensure that owners are actively engaged in the business and committed to its success.
If there are any changes to the ownership of your Hydrodog franchise, you and your owners must revise the Principal Owners Statement to reflect these changes. No ownership changes can be made without Hydrodog's approval. Additionally, Hydrodog may request further information about your organization or formation, ensuring they maintain an accurate record of the franchise's ownership structure.