Does the assignment of operating Dog Haus Restaurants to Affiliates affect the Area Developer's Minimum Development Obligation?

According to Dog Haus's 2025 Franchise Disclosure Document, the assignment of operating Dog Haus restaurants to affiliates does not necessarily affect the Area Developer's Minimum Development Obligation. Specifically, Dog Haus Restaurants that are operating and are assigned to Affiliates of the Area Developer, with the Franchisor's consent, will count towards satisfying the Minimum Development Obligation.

This is conditional, however. For the restaurants assigned to affiliates to count toward the Minimum Development Obligation, the affiliate must continue to comply with the terms of the Area Development Agreement. If the affiliate fails to comply with the agreement, those locations may no longer count toward the Area Developer's obligation.

This conditionality highlights the importance of ensuring that any affiliate to whom restaurants are assigned fully understands and adheres to the terms of the Dog Haus agreement. The Area Developer retains responsibility for ensuring compliance, as any failure by the affiliate could impact their ability to meet the Minimum Development Obligation.