The Knights of the Dragon is one of many different knightly orders in the Daggerfall area.
The little scruffy guy to the left is the quest giver for the Knights of the Dragon. The other two are just regular guild members.
This knightly order has a few advantages. Staying at any tavern in the province of Daggerfall is free "for such a knight as Gaimmienne". That can be useful since, although staying at the Fighters' Guild is also free for Gaimmienne, the Fighters' Guild is only open between 11:00 and 23:00 hours, whereas taverns are open 24 hours a day.
Knights do not get paid for quests, but they can receive certain rewards from the order. One is often rewarded with a peice of armor after completing a quest. So far the armor has been lousy, but then again Gaimmienne is still only a low ranking member (a Chevalier). She has been told, however, that if she gains sufficient rank the guild will give her a house.