Does Hydrodog require the spouses of any owners to sign a Principal Owner's Guaranty?
Hydrodog Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a Business Entity, your owners must not only personally guarantee your obligations under the Franchise Agreement, but also agree to be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement. This includes both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities. The form of "Principal Owner's Guaranty" is attached as Exhibit "B" to the Franchise Agreement. We require you to complete a "Principal Owner's Statement" in the form attached as Exhibit "D," which describes all of your owners and their interests in you. You are required to identify one of your owners as having authority to communicate with us and enter into agreements with us on your behalf. We do not require the spouses of any owners to sign a Principal Owner's Guaranty.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 34–35)
What This Means (2025 FDD)
According to Hydrodog's 2025 Franchise Disclosure Document, Hydrodog does not require spouses of owners to sign a Principal Owner's Guaranty. However, if a franchisee is a Business Entity, the owners must personally guarantee the obligations under the Franchise Agreement. They must also agree to be personally bound by, and personally liable for the breach of, every provision of the Franchise Agreement. This includes both monetary obligations and obligations to take or refrain from taking specific actions or to engage or refrain from engaging in specific activities.
The Principal Owner's Guaranty is attached as Exhibit "B" to the Franchise Agreement. Hydrodog requires franchisees to complete a "Principal Owner's Statement," which is attached as Exhibit "D," describing all of the owners and their interests in the business. Franchisees are required to identify one owner as having the authority to communicate with Hydrodog and enter into agreements on the company's behalf.
It is important to note that while spouses are not required to sign the Principal Owner's Guaranty, all owners are bound by the agreement. This means that if the franchise defaults on its obligations, Hydrodog can pursue the owners personally for any damages. Prospective franchisees should carefully review the Principal Owner's Guaranty and the Franchise Agreement before signing anything.