What is considered an 'Assignment' under the Dog Haus Area Development Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer acknowledges and agrees that Area Developer has no right, by operation of law or otherwise, to sell, assign, transfer, pledge, donate, encumber or otherwise deal with, directly or indirectly, (i) any interest in this Agreement; or (ii) the right to use the Dog Haus System or the Dog Haus Marks granted pursuant to this Agreement (an "Assignment") without Franchisor's prior written consent.
Franchisor shall not unreasonably withhold its consent to an Assignment if, in Franchisor's judgment, Area Developer satisfies the conditions to the Assignment identified in this Agreement.
- Unless the Parties otherwise agree in writing, Area Developer shall not make any Assignment of this 9.2.1 Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by Area Developer in the Development Area.
As a condition to Franchisor's consent to such an Assignment, the assignee must execute Franchisor's Then-Current form of Franchise Agreement for each Dog Haus Restaurant sold to the assignee.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, an "Assignment" refers to any direct or indirect action by the Area Developer that involves selling, assigning, transferring, pledging, donating, encumbering, or otherwise dealing with either any interest in the Area Development Agreement itself, or the right to use the Dog Haus System or the Dog Haus Marks granted by the agreement.
This definition has significant implications for a prospective Dog Haus Area Developer. It means that the Area Developer cannot transfer their rights or obligations under the Area Development Agreement without the prior written consent of Dog Haus. Dog Haus retains control over who becomes an Area Developer within their system, ensuring that new developers meet their standards and are capable of upholding the brand's reputation.
Dog Haus also maintains the right to not unreasonably withhold consent to an assignment if the Area Developer meets the conditions outlined in the agreement. Unless otherwise agreed to in writing, any assignment of the Area Development Agreement must occur alongside a concurrent assignment of all Dog Haus Restaurants owned and operated by the Area Developer within the Development Area to the same approved assignee. This ensures that the entire operation within the designated area is transferred together, preventing fragmentation and maintaining consistency.
Before an assignment can be approved, the assignee must execute Dog Haus's then-current form of Franchise Agreement for each Dog Haus Restaurant being sold. This protects Dog Haus by ensuring that the new franchisee is bound by the most up-to-date terms and conditions, which may differ materially from the original Area Development Agreement. This requirement allows Dog Haus to adapt its agreements to changing market conditions and maintain uniformity across its franchise system.