What is the Principal Owner's Guaranty for a HydroDog franchise?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company or limited partnership (a "Business Entity"), your owners will sign our principal owner's guaranty (the "Principal Owner's Guaranty") our current form of which is attached to the Franchise Agreement as Exhibit "B."
Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–10)
What This Means (2025 FDD)
According to HydroDog's 2025 Franchise Disclosure Document, if the franchisee is a corporation, limited liability company, or limited partnership, the owners are required to sign a Principal Owner's Guaranty. The document states that the current form of this guaranty is attached to the Franchise Agreement as Exhibit "B."
In practical terms, this means that if a franchisee chooses to operate their HydroDog business under a business entity structure rather than as an individual, the franchisor, Legacy Franchisors, LLC, requires the owners of that entity to personally guarantee the obligations of the franchise agreement. This is a common practice in franchising, as it provides the franchisor with additional security and recourse in case the business entity fails to meet its financial or contractual obligations.
Prospective HydroDog franchisees should carefully review Exhibit B of the Franchise Agreement to fully understand the scope and terms of the Principal Owner's Guaranty. This includes understanding what specific obligations are being guaranteed, the conditions under which the guaranty can be invoked, and the potential liabilities of the owners. It is advisable to seek legal counsel to review the guaranty and ensure a clear understanding of its implications before signing the Franchise Agreement.