What does Hydrodog require the Principal Owner's Guaranty to undertake?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
urnish 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 o
Source: Item 23 — RECEIPTS (FDD pages 43–166)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, each Principal Owner must sign and deliver Hydrodog's standard form of Principal Owner's Guaranty. This guaranty requires the owner to be bound jointly and severally by all provisions of the Franchise Agreement and any other agreements between the franchisee and Hydrodog, including any amendments or modifications.
In practical terms, this means that each principal owner (defined as someone with at least 20% ownership) is personally liable for the franchisee's obligations to Hydrodog. If the franchise business fails to meet its financial or contractual obligations, Hydrodog can pursue any or all of the principal owners individually or collectively to recover the amounts owed or enforce compliance. This is a significant commitment, as it puts the personal assets of the principal owners at risk.
This requirement is a common practice in franchising, as it provides the franchisor with added security and ensures that the owners are fully invested in the success of the franchise. Prospective Hydrodog franchisees should carefully review the Principal Owner's Guaranty and understand the full extent of their personal liability before signing the Franchise Agreement. It is advisable to seek legal counsel to fully understand the implications of this guaranty.