What constitutes a Default under the Dog Haus Area Development Agreement related to the Development Schedule?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Area Developer shall satisfy the Minimum Development Obligation by Opening the number of Dog Haus Restaurants in the Development Area within each Development Period as required by the Development Schedule set forth on Exhibit A and by continuing to operate the cumulative number of Dog Haus Restaurants required by the Minimum Development Obligation.
Failure to comply with the Development Schedule shall constitute a Default under this Agreement and shall entitle Franchisor to terminate this Agreement, unless the Default results from an event of Force Majeure, in which case, the deadline to Opening a Dog Haus Restaurant may be extended by Franchisor as provided in Section 2.7.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, failure to comply with the Development Schedule constitutes a default under the Area Development Agreement. This entitles Dog Haus to terminate the agreement, unless the default results from an event of Force Majeure. In such cases, the deadline for opening a Dog Haus Restaurant may be extended by Dog Haus, as detailed in Section 2.7 of the agreement.
This means that as an Area Developer, you are obligated to open a specific number of Dog Haus restaurants within defined periods, as outlined in Exhibit A of the Area Development Agreement. Failing to meet these deadlines can lead to the termination of your agreement with Dog Haus. The exception to this is if external, uncontrollable events (Force Majeure) prevent you from meeting the schedule, in which case Dog Haus may grant an extension.
Prospective Area Developers should carefully review the Development Schedule (Exhibit A) and assess their ability to meet the required timelines for opening new Dog Haus locations. Understanding the conditions that constitute Force Majeure, as defined in Section 2.7, is also crucial. It is important to have a clear understanding of the obligations and potential consequences of not meeting the development schedule, and to evaluate the risks associated with adhering to the schedule.