Does the Dog Haus Area Development Agreement grant an exclusive territory?

According to Dog Haus's 2025 Franchise Disclosure Document, the Area Development Agreement does grant a limited exclusive territory. Specifically, Dog Haus will not operate or grant a license or franchise to anyone else to operate a Dog Haus restaurant in the franchisee's Development Area during the term of the Area Development Agreement. The Development Area is defined as a specific number of venues in a defined area, which may include one or more cities, counties, states, or some other defined area, subject to Dog Haus's approval.

However, the FDD also states that the franchisee will not receive an exclusive territory under the Area Development Agreement and may face competition from other franchisees, outlets that Dog Haus owns, other distribution channels, or competitive brands that Dog Haus controls. This indicates that while Dog Haus will not directly franchise another Dog Haus location in the Development Area, other forms of competition are possible.

After the Area Development Agreement expires, Dog Haus has the right to develop, own, operate, and grant franchises to third parties to operate Dog Haus restaurants at any location within or outside the Development Area without restriction, only subject to the territorial rights granted under the individual Franchise Agreements. This means that the exclusivity is limited to the term of the Area Development Agreement, and Dog Haus can establish other franchises in the area afterward, subject to the existing franchisees' protected territories.