What is the 'Development Obligation' for a Central Bark Doggy Day Care franchisee, and where is it defined?
Central_Bark_Doggy_Day_Care Franchise · 2025 FDDAnswer from 2025 FDD Document
LOPMENT OBLIGATION**
2.1 Development Obligation
Within each Development Period specified in Addendum 2 (the "Development Schedule"), you must construct, equip, open and thereafter continue to operate at, and only at, locations within the Multiunit Territory, not less than the cumulative number of Central Bark Facilities required by the Development Obligation for that Development Period. The Development Obligation is not our representation, express or implied, that the Multi-unit Territory can support, or that there are or will be sufficient sites for, the number of Central Bark Facilities specified in the Development Schedule, or during any particular Development Period.
2.2 Timing of Execution of Franchise Agreements
Simultaneously with signing this Agreement, you or an approved Affiliate must sign and deliver to us a Franchise Agreement and related documents for the first Central Bark Facility you are obligated to acquire under this Agreement.
Source: Item 1 — Franchisee shall have paid all Royalty Fees, advertising fund contributions, LAC contributions, amounts owed for purchases by Franchisee from Franchisor, or Franchisor's affiliates, and all other amounts owed to Franchisor, Franchisor's affiliates, and third-party creditors, and shall have submitted to Franchisor all required reports and statements; (FDD pages 106–233)
What This Means (2025 FDD)
According to Central Bark Doggy Day Care's 2025 Franchise Disclosure Document, the Development Obligation pertains to a franchisee's commitment to develop and operate a specific number of Central Bark facilities within a defined territory and timeframe. This obligation is detailed in Article 2 of the franchise agreement, specifically Section 2.1, and is further specified in Addendum 2, known as the Development Schedule.
The Development Obligation requires the franchisee to construct, equip, open, and continuously operate a minimum number of Central Bark facilities within the Multi-unit Territory during each Development Period outlined in Addendum 2. However, Central Bark Doggy Day Care clarifies that this obligation does not constitute a guarantee that the territory can support the specified number of facilities or that suitable sites will be available.
Furthermore, the glossary of terms defines 'Development Obligation' as the franchisee's right and obligation to construct, equip, open, and continuously operate Central Bark Facilities within the Multi-unit Territory. The number of facilities and the timeframe for development are detailed in Addendum 2 for each Development Period, and if applicable, within specified geographic areas.