What constitutes a default regarding payments owed by a Dog Haus franchisee after receiving notice from the franchisor?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.2.23 If, contrary to the terms of Section 7.10, Franchisee fails to sell and offer for sale all and only authorized services and merchandise required by Franchisor after Franchisee receives a Notice of Default from Franchisor due to Franchisee's failure to do so, whether or not Franchisee has cured the Default after one or more notices; or if Franchisee fails to discontinue selling and offering for sale any services or merchandise that Franchisor may, in its sole discretion, disapprove in writing at any time, within ten (10) days after Franchisee's receipt of written notice from Franchisor to do so.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, a franchisee can be considered in default for failing to sell only authorized merchandise after receiving notice from Dog Haus. Specifically, if a franchisee does not offer for sale all and only the authorized services and merchandise required by Dog Haus after receiving a Notice of Default, it constitutes a default, regardless of whether the franchisee has attempted to cure the default after multiple notices.
Additionally, if a Dog Haus franchisee sells services or merchandise that Dog Haus disapproves of in writing, the franchisee must discontinue selling those items within ten days of receiving written notice from Dog Haus. Failure to comply within this timeframe also constitutes a default under the franchise agreement.
These stipulations are important for prospective franchisees to understand, as they highlight Dog Haus's strict control over the products and services offered at the franchised location. Franchisees must adhere to the approved offerings and promptly remove any disapproved items to avoid being in default, which could lead to further action by Dog Haus.