How is 'Business Judgment' defined in relation to the Dog Haus franchisor's decision-making?

According to Dog Haus's 2025 Franchise Disclosure Document, 'Business Judgment' means that Dog Haus is allowed to exercise its judgment however it believes is appropriate in a given circumstance without limitation, subject to the use of that discretion in any reasonable way as more fully described in Section 18.16 of the agreement.

Dog Haus retains the discretion to make decisions or take actions that may affect an area developer's interests, based on its assessment of its own interests and the interests of the Dog Haus system, other area developers, and Dog Haus Restaurants generally. The franchisor is not required to consider the individual interests of the area developer or other specific area developers. Dog Haus will not be liable to the area developer for exercising its discretion, provided that at least one motive is a reasonable business justification.

In granting approval of franchised locations, designating suppliers, and setting standards, Dog Haus will exercise its business judgment. However, Dog Haus will not be liable for business losses or failure to meet expectations resulting from the exercise of its business judgment. The franchisor also disclaims warranties and liability for the acts or omissions of contractors, vendors, suppliers, products, or employees used by the area developer based on Dog Haus's business judgment. This means a franchisee may not be able to hold Dog Haus accountable for decisions that negatively impact their business if those decisions are made using reasonable business judgment.