factual

What conditions must a Dog Haus franchisee meet to be considered in 'Good Standing' when requesting consent for assignment?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 14.4.2 Franchisee must be in Good Standing on the date consent is requested and until the date of closing of the Assignment.

Source: Item 22 — CONTRACTS (FDD page 87)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee must be in 'Good Standing' both when requesting consent for assignment and until the date the assignment closes. The FDD does not define 'Good Standing.'

Typically, 'Good Standing' in franchise agreements means the franchisee is current on all payments and in compliance with all operational standards and contractual obligations. This is a common requirement to ensure the brand's reputation is upheld by franchisees who are performing well.

Since the specific criteria for 'Good Standing' are not detailed in this section of the FDD, it is important for a prospective Dog Haus franchisee to ask the franchisor for a clear definition. Understanding these requirements is crucial, as failure to meet them could prevent the franchisee from selling their business when they decide to exit.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.