What are the conditions that a Dog Haus franchisee must satisfy to exercise their Renewal Rights?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may exercise its Renewal Rights only if all of the following conditions precedent are satisfied prior to the Expiration Date or Renewal Expiration Date, as the case may be: (i) Franchisee shall have fully performed all of its obligations under this Agreement, any Area Development Agreement and all other agreements binding Franchisor and Franchisee and shall be in Good Standing on the date of the Renewal Notice, on the date of Franchisor's execution of the Renewal Franchise Agreement and on the Expiration Date of Renewal Expiration Date, as the case may be; (ii) Franchisee shall, prior to the commencement date of the Renewal Term, undertake and complete at its expense, the remodeling, renovation, modernization, and refurbishing of the Franchised Location and the Franchised Restaurant to comply with Franchisor's Then-Current specifications and standards for new Dog Haus Restaurants; (iii) Franchisee shall not have committed three (3) or more material Defaults during any twelve (12) month period during the then-expiring Initial Term or Renewal Term, as the case may be, which were subject to notices of Default issued by Franchisor, whether or not the Defaults were cured; (iv) Franchisee shall continue to comply with the terms and conditions of this Agreement; (v) Franchisee shall have satisfied Franchisor's Then-Current qualifications and training requirements; (vi) Franchisee shall have executed and delivered to Franchisor a General Release; (vii) each Owner and each Owner's spouse shall have executed and delivered to Franchisor a personal guarantee, in a form then satisfactory to Franchisor, jointly and severally guaranteeing Franchisee's performance of its obligations under the Renewal Franchise Agreement; (viii) Franchisee shall have paid Franchisor a Renewal Fee when Franchisee issues the Renewal Notice to Franchisor; and (ix) Franchisee shall have executed the Renewal Franchise Agreement and delivered it to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee has the right to renew their franchise agreement for successive terms, but this is contingent upon meeting specific conditions. To exercise the Renewal Right, the franchisee must notify Dog Haus in writing at least twelve months before the current term expires. This notification is termed the 'Renewal Notice.'
Several conditions must be met to successfully renew the franchise agreement. The franchisee must have fully performed all obligations under the existing agreement, any Area Development Agreement, and any other agreements with Dog Haus, and must be in 'Good Standing' at the time of the Renewal Notice, when Dog Haus executes the Renewal Franchise Agreement, and on the expiration date of the current term. The franchisee is also responsible for remodeling and refurbishing the franchised location to meet Dog Haus's current standards for new restaurants, completing this work before the new term begins.
Additionally, the franchisee must not have more than two material defaults within any 12-month period during the current term, even if those defaults were cured. They must continue to comply with the terms of the existing agreement and meet Dog Haus's then-current qualifications and training requirements. The franchisee, along with their spouse if applicable, must execute a general release and a personal guarantee for the new agreement. Finally, the franchisee must pay a renewal fee when submitting the Renewal Notice and must execute and deliver the Renewal Franchise Agreement to Dog Haus.