What constitutes 'control' of an entity in the context of a Dog Haus franchise agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Dog Haus System. Franchisee shall operate the Dog Haus Restaurant in compliance with the terms of this Agreement and the Manuals. Franchisee acknowledges and agrees that Franchisee alone shall exercise dayto-day control over all operations, activities and elements of the Dog Haus Restaurant, including over Franchisee's employees, and that under no circumstance shall Franchisor do so or be deemed to do so. Franchisee further acknowledges and agrees that the various requirements, restrictions, prohibitions, specifications and procedures of the Dog Haus System with which Franchisee must comply under this Agreement, the Manuals or otherwise, do not directly or indirectly constitute, suggest, infer or imply that Franchisor controls any aspect or element of the day-to-day operations of the Dog Haus Restaurant, which Franchisee alone controls, but only constitute standards to which Franchisee must adhere when exercising Franchisee's control over the day-to-day operations of the Dog Haus Restaurant consistent with the policies of Franchisor. Franchisee shall comply with Franchisor's standards and shall operate the Franchised Restaurant in conformity with the methods, standards, and specifications that Franchisor may from time to time prescribe in the Manuals or otherwise. Franchisee shall comply, at Franchisee's expense, with all modifications prescribed by Franchisor and shall implement changes to the Dog Haus System within the time periods specified by Franchisor following Franchisee's receipt of notice from Franchisor to do so. Franchisee shall refrain from deviating from the methods, standards, and specifications without Franchisor's prior written consent and from otherwise operating in any manner which reflects adversely
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisee is responsible for the day-to-day control of the Dog Haus restaurant. Specifically, the franchisee alone exercises control over all operations, activities, and elements of the restaurant, including their employees. The FDD states that under no circumstance shall Dog Haus do so or be deemed to do so.
Dog Haus establishes standards and specifications in the manuals that the franchisee must adhere to. These standards do not imply that Dog Haus controls the day-to-day operations, but rather that the franchisee must operate within the brand's established guidelines. The franchisee must comply with these standards and any modifications prescribed by Dog Haus, implementing changes within the specified time periods.
This arrangement is typical in franchising, where the franchisee manages daily operations while adhering to the franchisor's system standards. This allows Dog Haus to maintain brand consistency across all locations while empowering franchisees to manage their businesses. The franchisee's control is subject to compliance with Dog Haus's methods, standards, and specifications, ensuring the restaurant operates in conformity with the brand's requirements.