What constitutes a default under the Dog Haus franchise agreement regarding the Dog Haus Marks?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Any unauthorized use of the Dog Haus Marks by Franchisee shall constitute a Default under this Agreement and an infringement of Franchisor's and Franchisor's Affiliate's rights in and to the Dog Haus Marks.
Franchisee acknowledges and agrees that as between Franchisor and Franchisee (i) Franchisor owns the Dog Haus Marks and the Dog Haus System; (ii) Franchisee owns no goodwill or rights in the Dog Haus Marks or the Dog Haus System except for the license granted by this Agreement; and (iii) Franchisee's use of the Dog Haus Marks and any goodwill established by that use shall inure to the exclusive benefit of Franchisor.
Franchisee agrees not to contest, or assist any other person to contest, the validity of Franchisor's rights and interest in the Dog Haus Marks or the Dog Haus System either during the Term or after this Agreement terminates or expires.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, unauthorized use of the Dog Haus Marks by a franchisee constitutes a default under the franchise agreement. The agreement emphasizes that the right to use the Dog Haus Marks is solely derived from the franchise agreement and is limited to operating as a franchisee in compliance with the agreement.
This means that any use of the Dog Haus Marks outside the scope of the agreement, such as using the marks for an unapproved business or in a manner that violates Dog Haus's standards, would be considered a breach of contract. This unauthorized use is also considered an infringement of Dog Haus's rights to the marks.
Dog Haus retains ownership of the Dog Haus Marks and the associated goodwill. Franchisees acknowledge that they gain no rights to the marks or the Dog Haus system beyond the license granted in the agreement. Any goodwill established through the franchisee's use of the marks inures exclusively to the benefit of Dog Haus. Franchisees are also prohibited from contesting the validity of Dog Haus's rights to the marks during or after the term of the agreement.