What is the consequence of an attempted Assignment by Dog Haus Area Developer that fails to comply with the requirements of Article 9?

According to Dog Haus's 2025 Franchise Disclosure Document, any attempt by an Area Developer to assign their rights or interests in the agreement that does not comply with the requirements outlined in Article 9 will be considered null and void. Furthermore, such an attempt will constitute a default under the Area Development Agreement.

This means that if a Dog Haus Area Developer tries to transfer their rights without obtaining proper consent or meeting all the conditions specified in Article 9, the attempted transfer will not be legally recognized. The Area Developer will still be bound by the original agreement, and the purported new owner will have no rights under it.

Moreover, the attempted non-compliant assignment triggers a default under the Area Development Agreement, which could lead to further consequences. While the excerpt does not specify what those consequences are, defaults can often lead to termination of the agreement, loss of development rights, and potential legal action by Dog Haus.

Prospective Dog Haus Area Developers should carefully review Article 9 and understand all requirements for assignments to avoid unintentionally triggering a default and its associated penalties. It is crucial to seek legal counsel to ensure full compliance with the agreement's terms when considering any transfer of ownership or rights.