In the Dog Haus agreement, what happens if any part of the agreement is deemed invalid?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Any invalidity of any portion of this Agreement shall not affect the validity of the remaining portions and unless substantial performance of this Agreement is frustrated by any such invalidity, this Agreement shall continue in full force and effect.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the validity of the remaining portions of the agreement will not be affected if any part of the agreement is deemed invalid. Unless the invalidity frustrates substantial performance of the agreement, the agreement will continue in full force and effect. This clause ensures that the entire agreement doesn't collapse due to a single unenforceable provision.
This type of clause, known as a severability clause, is common in franchise agreements. It aims to preserve the overall contract by removing only the problematic section. For a prospective Dog Haus franchisee, this means that if a specific clause is later found to be unenforceable, the rest of the agreement remains valid, providing a level of security and predictability.
However, the clause includes a crucial condition: the agreement continues in full force unless the invalidity frustrates substantial performance. This means that if the invalidated portion is so critical that it undermines the entire purpose of the agreement, the whole agreement might be at risk. A prospective franchisee should carefully consider which parts of the agreement are most important to them and assess the risk that their substantial performance could be frustrated. It would be prudent to seek legal counsel to understand the potential implications of this clause in the context of the entire Dog Haus franchise agreement.