What constitutes a 'Competitive Business' that a Dog Haus Area Developer is restricted from being involved with?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
er any combination of freshly prepared, cooked to order, high quality gourmet hot dogs, sausages, hamburgers, chicken or plant-based food products or a Dog Haus Restaurant and that Area Developer's knowledge of the Dog Haus Confidential Information was obtained solely from Franchisor, following Area Developer's training by Franchisor and Area Developer's subsequent operation of the Dog Haus Restaurant under the Franchise Agreement. Area Developer specifically acknowledges that, pursuant to this Agreement, Area Developer will receive valuable specialized training and Dog Haus Confidential Information, including, without
limitation, Dog Haus Confidential Information regarding the operational, sales, promotional, and marketing methods and techniques of Franchisor and the Dog Haus System, which are unique and proprietary to Franchisor, derive independent economic value from not being generally known to the public and are the subject of Franchisor's efforts and that are reasonable under the circumstances to maintain their secrecy.
- Non-Competition During Term of Agreement. Area Developer and each Owner covenants that during the Term, except as otherwise approved in writing by Franchisor, Area Developer and each Owner shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, or legal Entity (i) divert or attempt to divert any present or prospective Dog Haus customer to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business, provided, however, the restrictions stated in this Section 13.2 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Area Developer.
- 13.3 Non-Competition After Expiration or Termination of Agreement. Except as Franchisor otherwise approves in writing, commencing upon the date of: (i) an Assignment permitted under Article 9; (ii) the Expiration Date of this Agreement; (iii) the termination of this Agreement (regardless of the cause for termination);
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, an Area Developer is restricted from involvement with a 'Competitive Business' during the term of the agreement. Specifically, the Area Developer cannot divert or attempt to divert any present or prospective Dog Haus customer to any Competitive Business, nor can they perform any act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System.
This restriction extends to owning, engaging in, or rendering services to a Competitive Business, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative, or agent. However, these restrictions do not apply to an Owner after two years from the date they cease association with the Area Developer.
After the agreement expires or terminates, the Area Developer and each Owner are restricted for two years from owning, engaging in, or rendering services to any Competitive Business located at a location designated as a "Franchised Location" in a Franchise Agreement between Dog Haus and the Area Developer, or within a two-mile radius of any Dog Haus Restaurant or Franchised Location. An exception exists for ownership of less than 5% of the equity securities of any Competitive Business registered under the Securities Act of 1833 or the Securities Exchange Act of 1834.
Dog Haus also reserves the right to develop, own, and operate other businesses, including beverage, snack, or food businesses that are not Competitive Businesses, under different marks and systems within and outside the Development Area. This allows Dog Haus to engage in activities that might otherwise be seen as competitive, provided they are not under the Dog Haus brand.