What assets can Dog Haus compel the Area Developer to sell under the 'Take-Along Right'?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1.2 Upon the occurrence of a Capital Event, Franchisor shall have the right (the "Take-Along Right") to compel Area Developer to sell and, in such event, Area Developer shall sell the assets of any or all of the Dog Haus Restaurants, regardless of whether such Dog Haus Restaurants are under construction or are Open and operating (collectively the "Take-Along Assets") at the same value attributable to Dog Haus Restaurants owned and operated by Franchisor or its Affiliates at the closing of a Capital Event.
Franchisor shall exercise this Take-Along Right to compel the sale of the Take-Along Assets by Area Developer by providing Area Developer with written notice (the "Take-Along Notice") setting forth the time and place of the closing of the Capital Event, which time and place shall not be less than thirty (30) days after the date of the Take-Along Notice, and the expected price and form of consideration to be paid for the Take-Along Assets at the closing.
Franchisor and or its Affiliates may sell their assets, the Dog Haus Marks, or the Dog Haus System, may sell securities in a public offering or in a private placement, may merge, acquire other corporations, or be acquired by another corporation, and may undertake a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring (collectively, a "Capital Event"), all without the consent or approval of Area Developer.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, under the 'Take-Along Right', Dog Haus can compel the Area Developer to sell the assets of any or all Dog Haus Restaurants. These assets are referred to as 'Take-Along Assets', regardless of whether the Dog Haus Restaurants are under construction, open, or operating.
Dog Haus can exercise this 'Take-Along Right' by providing the Area Developer with a written 'Take-Along Notice'. This notice must include the time and place of the closing of a 'Capital Event', which must be at least thirty days after the date of the 'Take-Along Notice'. The notice must also include the expected price and form of consideration to be paid for the 'Take-Along Assets' at the closing.
The value of the 'Take-Along Assets' will be the same value attributable to Dog Haus Restaurants owned and operated by Dog Haus or its Affiliates at the closing of a Capital Event. A 'Capital Event' includes selling assets, the Dog Haus Marks, or the Dog Haus System, selling securities, merging, acquiring other corporations, being acquired by another corporation, or undertaking a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring.