What are the conditions precedent that must be satisfied before Dog Haus will execute the Additional Area Development Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Area Developer has so executed and returned the Additional Area Development Agreement, and has satisfied the conditions precedent set forth in Section 2.6.2, Franchisor shall execute the Additional Area Development Agreement, and return a fully executed copy to Area Developer.
- 2.6.2 Franchisor shall execute the Additional Area Development Agreement, if, and only if, (i) Franchisor elects to grant the Additional Development Rights to Area Developer; (ii) Area Developer has fully performed all of its obligations under this Agreement and all other agreements between Franchisor and Area Developer and is in Good Standing on the date of the Additional Development Notice and on the date of Franchisor signs the Additional Area Development Agreement; (iii) Area Developer has demonstrated Area Developer's Then-Current financial ability to timely implement and complete the Additional Development Obligation; (iv) Area Developer continues to operate no less than the aggregate number of Dog Haus Restaurants in the Development Area as required by the Minimum Development Obligation; (v) Area Developer has executed the Additional Area Development Agreement and delivered it to Franchisor together with the development fees and initial development fees payable to Franchisor for the Additional Development Rights; and (vi) Area Developer executes and delivers to Franchisor a General Release in a form acceptable to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, before Dog Haus will execute an Additional Area Development Agreement, several conditions must be met. These conditions ensure that the Area Developer is in good standing and capable of fulfilling the additional development obligations.
First, Dog Haus must elect to grant the Additional Development Rights to the Area Developer. The Area Developer must have fully performed all obligations under the existing agreements and be in good standing both when the Additional Development Notice is given and when Dog Haus signs the Additional Area Development Agreement. The Area Developer needs to demonstrate the financial ability to complete the Additional Development Obligation in a timely manner.
Additionally, the Area Developer must continue to operate the minimum required number of Dog Haus restaurants in the Development Area. The Area Developer must also execute and deliver the Additional Area Development Agreement to Dog Haus, along with the necessary development and initial development fees for the Additional Development Rights. Finally, the Area Developer must provide Dog Haus with a General Release in a form that is acceptable to Dog Haus.
These conditions protect Dog Haus by ensuring that Area Developers seeking to expand their development rights are financially stable, compliant with existing agreements, and committed to the continued operation of their current restaurants. Meeting these conditions is essential for an Area Developer to secure additional development opportunities with Dog Haus.