In the Dog Haus Area Development Agreement, are successors and assigns bound by the agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
ment or any other agreement. All contracts by and between Area Developer and the Proposed Buyer shall expressly include a subordination provision permitting payment of the sales proceeds to Area Developer only after any outstanding obligations owed to Franchisor and its Affiliates are fully satisfied.
- 9.4.10 Except when the transferee is an existing Area Developer or franchisee of Franchisor, the Proposed Buyer, and a supervisorial or managerial employee of the Proposed Buyer who will have general management and supervisory responsibilities for the Dog Haus Restaurants who is acceptable to Franchisor, must complete to Franchisor's sole satisfaction Franchisor's Initial Training Program prior to the effective date of the Assignment.
- 9.4.11 The Proposed Buyer must conform the Dog Haus Restaurants with Franchisor's Then-Current appearance and design standards and equipment specifications applicable to new Dog Haus Restaurants.
- 9.4.12 Area Developer must sign a guarantee personally guaranteeing the Proposed Buyer's obligations under the new Area Development Agreement in favor of Franchisor.
- 9.5 Death or Incapacity. In the event of the death or incapacity of an Owner, the spouse, heirs or personal representative of the deceased or incapacitated person, or the remaining shareholders, members, partners or owners (the "Successor") shall have one hundred eighty (180) days from the date of death or incapacity in which to (i) purchase the interest of the deceased or incapacitated person; or (ii) complete an Assignment of the interest of the deceased or incapacitated person to a qualified, approved third party, subject to the provisions of this Article 9.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Area Development Agreement outlines specific conditions regarding successors and assigns. In the event of the death or incapacity of an owner, the successor (spouse, heirs, or personal representative) has 180 days to either purchase the interest of the deceased or incapacitated person or complete an assignment to a qualified, approved third party, subject to the agreement's provisions. If neither action is taken within the 180-day period, Dog Haus has the right to terminate the agreement.
Regarding assignments, the Area Developer cannot assign their interest in the agreement or the rights to use the Dog Haus System or Marks without 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. A proposed buyer must sign Dog Haus's current Area Development Agreement, which may differ significantly from the original agreement and will supersede it. The Area Developer must also sign a guarantee personally guaranteeing the proposed buyer's obligations under the new Area Development Agreement.
Furthermore, Area Developers remain subject to obligations that survive the transfer, termination, or expiration of the agreement, including provisions related to non-competition, non-interference, and non-disclosure of confidential information. These stipulations ensure that both successors and assigns are bound by certain aspects of the agreement, maintaining the integrity and protection of the Dog Haus system and brand.