What is the purpose of the Principal Owner's Statement form for Hydrodog?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, the Principal Owner's Statement serves to completely and accurately describe all owners of a Hydrodog business entity and their respective interests in the company. This is particularly relevant if the franchisee is a business organization such as a corporation, limited liability company, or partnership. Hydrodog requires this statement to ensure transparency and to maintain control over the ownership and management of its franchises.
The form is part of Hydrodog's effort to ensure that any changes in ownership are properly documented and approved by them. Franchisees must revise the Principal Owners Statement to reflect any ownership changes, and these changes are subject to Hydrodog's approval. This allows Hydrodog to keep track of who is involved in the business and to ensure that all owners meet their standards.
Furthermore, Hydrodog requires each owner to sign a Principal Owner's Guaranty, binding them jointly and severally to the franchise agreement. This guaranty ensures that all owners are responsible for upholding the terms of the agreement. The Principal Owner's Statement, therefore, is a critical tool for Hydrodog to manage and control the ownership structure of its franchise locations and to enforce the obligations of all parties involved.