Is the Principal Owner's Statement required if the Hydrodog franchisee is a sole proprietorship?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
PRINCIPAL OWNER'S STATEMENT
This form must be completed by the Franchisee Entity ("Franchisee") if Franchisee has multiple owners or if Franchisee is owned by another/other business organization (such as a corporation, partnership or limited liability company). Franchisor is relying on the truth and accuracy of this form in awarding the Franchise Agreement to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to the 2025 Hydrodog Franchise Disclosure Document, the Principal Owner's Statement is required if the franchisee is a business entity with multiple owners or is owned by another business organization.
Specifically, the document states that the form must be completed by the Franchisee Entity if the Franchisee has multiple owners or is owned by another business organization such as a corporation, partnership, or limited liability company. This implies that if the Hydrodog franchisee is a sole proprietorship, the Principal Owner's Statement may not be required, as a sole proprietorship typically has a single owner and is not owned by another business organization.
However, the FDD indicates that Hydrodog relies on the truth and accuracy of this form in awarding the Franchise Agreement to the Franchisee. Therefore, a prospective franchisee should confirm with Hydrodog whether a modified or alternative statement is needed even in the case of a sole proprietorship to ensure full compliance and transparency.