What actions are prohibited regarding Dog Haus customers during the term of the agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer and each Owner covenants that during the Term, except as otherwise approved in writing by Franchisor, Area Developer and each Owner shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, or legal Entity (i) divert or attempt to divert any present or prospective Dog Haus customer to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business, provided, however, the restrictions stated in this Section 13.2 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Area Developer.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, during the term of the agreement, Area Developers and Owners are prohibited from certain actions related to Dog Haus customers and the brand's goodwill. Specifically, they cannot divert or attempt to divert any current or potential Dog Haus customer to a Competitive Business, whether through direct or indirect methods.
Additionally, Area Developers and Owners are barred from performing any action that could be detrimental or harmful to the goodwill associated with the Dog Haus Marks and the Dog Haus System. This encompasses a broad range of activities that could negatively impact the brand's reputation and customer relationships.
These restrictions are in place to protect the Dog Haus brand and prevent franchisees from using their knowledge and access to customers to benefit a competing business. However, these restrictions do not apply to any Owner after two years from the date the Owner ceases to be associated with the Area Developer in any capacity.