Does the personal liability of Hydrodog franchisee owners extend to both monetary obligations and specific actions or activities?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If two or more persons are at any time Franchise owners hereunder, whether or not as partners or joint venturers, their obligations and liabilities to us are joint and several.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, if two or more persons are franchise owners, their obligations and liabilities to Hydrodog are joint and several. This means that each owner can be held individually responsible for the full amount of any debt or obligation, not just a portion. This applies whether the owners are partners or joint venturers.
This has significant implications for prospective Hydrodog franchisees who plan to co-own a franchise. Each owner is fully liable for the financial and operational obligations, regardless of internal agreements between the owners. Hydrodog can pursue any one or all of the owners for the full amount owed or for compliance with the franchise agreement.
For example, if a Hydrodog franchise has two owners and the business incurs a debt of $10,000, Hydrodog can seek the entire $10,000 from either owner individually, regardless of their ownership percentage or any agreement they have between themselves about splitting debts. Similarly, if the franchise breaches the franchise agreement, each owner can be held fully responsible for rectifying the breach.