Is the Principal Owner's Statement for Hydrodog considered part of the Franchise Agreement?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
ou will bear a legend referring to the restrictions of this Agreement; and you will provide us with copies of these documents for our review.
- (c) the Principal Owners Statement will completely and accurately describe all of your owners and their interests in you. A copy of our current form of Principal Owners Statement is attached to the Franchise Disclosure Document you were furnished;
- (d) you and your owners agree to revise the Principal Owners Statement as may be necessary to reflect any ownership changes and to furnish 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).
- (g) a Principal Owner of your HydroDog Business Entity (defined as a person with at least a twenty percent (20%) ownership interest in you) must: (i) have management responsibility and authority over the "Business" (defined as your HydroDog Business) on a day-to-day basis; (ii) be actively employed on a full-time basis to manage your HydroDog Business's operations; (iii) be present at your HydroDog Business for at least fifty percent (50%) of the hours your HydroDog Business is open to the public for business; (iv) be bound by our then-current form of Confidentiality Agreement (or other form satisfactory to us); and (v) satisfactorily complete our initial training program and any other training programs we request during the Term; and
- (h) each of your Principal Owners, during the term of this Agreement, will sign and deliver to us our standard form of Principal Owner's Guaranty ("Owner's Guaranty") undertaking to be bound jointly and severally by all provisions of this Agreement and any other agreements between you and us.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, the Principal Owners Statement is related to the Franchise Agreement but is not explicitly stated to be part of it. If the franchisee is a business entity, the Principal Owners Statement must completely and accurately describe all of the business's owners and their interests. A copy of the current form is attached to the Franchise Disclosure Document.
The franchisee and its owners must revise the Principal Owners Statement to reflect any ownership changes, and they must furnish any other information about the organization or formation that Hydrodog requests. No ownership changes can occur without Hydrodog's approval. Each owner must sign and deliver Hydrodog's standard form of Principal Owner's Guaranty, agreeing to be bound by all provisions of the Franchise Agreement and any other agreements between the franchisee and Hydrodog.
Furthermore, if the franchisee is an entity, they are required to complete and update the statement of ownership throughout the term of the agreement and provide Hydrodog with a copy of any updates within 30 days of making them. All persons who own 20% or more of the beneficial ownership interests in the entity, and each such person's respective spouse, must personally and unconditionally guarantee the franchise owner's performance under the agreement by signing the Owners Agreement attached as Attachment D.