Is the Area Developer allowed to sublicense the Dog Haus agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, to protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, Area Developer shall not offer, sell, or negotiate the sale of its rights under this Agreement to any third party, either in Area Developer's own name or in the name and/or on behalf of Franchisor, except as otherwise provided in this Agreement.
Area Developer acknowledges and agrees that Area Developer has no right, by operation of law or otherwise, to sell, assign, transfer, pledge, donate, encumber or otherwise deal with, directly or indirectly, (i) any interest in this Agreement; or (ii) the right to use the Dog Haus System or the Dog Haus Marks granted pursuant to this Agreement (an "Assignment") without Franchisor's prior written consent.
Franchisor shall not unreasonably withhold its consent to an Assignment if, in Franchisor's judgment, Area Developer satisfies the conditions to the Assignment identified in this Agreement.
- Unless the Parties otherwise agree in writing, Area Developer shall not make any Assignment of this 9.2.1 Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by Area Developer in the Development Area.
As a condition to Franchisor's consent to such an Assignment, the assignee must execute Franchisor's Then-Current form of Franchise Agreement for each Dog Haus Restaurant sold to the assignee.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Area Developer is restricted from sublicensing the agreement. Specifically, the Area Developer cannot offer, sell, or negotiate the sale of their rights under the Area Development Agreement to any third party, whether in their own name or on behalf of Dog Haus, unless explicitly allowed in the agreement.
Furthermore, the Area Developer is prohibited from assigning or transferring any interest in the Area Development Agreement or the right to use the Dog Haus system or trademarks without obtaining prior written consent from Dog Haus. Dog Haus will not unreasonably withhold consent if the Area Developer meets the conditions for assignment outlined in the agreement.
As a condition for Dog Haus's consent to an assignment, the assignee must execute Dog Haus's current form of Franchise Agreement for each Dog Haus restaurant being sold to the assignee. Unless otherwise agreed in writing, the Area Developer can only assign the Area Development Agreement if they also concurrently assign all Dog Haus restaurants they own and operate in the Development Area to the same approved assignee. This ensures that any transfer of rights is comprehensive and maintains the integrity of the Dog Haus franchise system.