What is the deadline for an Area Developer to notify Dog Haus of their desire to extend the Term of the Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Area Developer satisfies the Minimum Development Obligation before the Expiration Date and desires to develop, open and operate additional Dog Haus Restaurants in the Development Area, Area Developer shall have the right to extend the Term of this Agreement for an additional five (5) years on the terms and conditions set forth in this Section 2.6. If Area Developer desires to extend the Term of this Agreement for an additional five (5) years, Area Developer shall, no later than one hundred eighty (180) days prior to the Expiration Date, notify Franchisor in writing (the "Additional Development Notice") that Area Developer desires to do so and provide Franchisor with a proposal for the development of additional Dog Haus Restaurants in the Development Area (the "Additional Development Obligation"), setting forth the number of additional Dog Haus Restaurants proposed to be opened by Area Developer, the proposed development fees and the proposed opening dates for each Dog Haus Restaurant during the extended term. Franchisor may, but has no obligation to, grant Area Developer the Additional Development Rights described in this Section 2.6 in its sole and absolute discretion.
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 who has met their minimum development obligations and wishes to extend the Area Development Agreement for an additional five years must provide written notice to Dog Haus no later than 180 days before the agreement's expiration date. This notification, called the "Additional Development Notice," must include a proposal for further development, outlining the number of additional Dog Haus restaurants, proposed development fees, and projected opening dates during the extended term.
This requirement ensures Dog Haus has ample time to evaluate the Area Developer's performance and future plans. It allows Dog Haus to assess whether granting additional development rights aligns with their strategic goals. The franchisor retains the sole discretion to approve or deny the extension, meaning that even if the Area Developer meets the notification deadline and proposes a solid plan, Dog Haus is not obligated to grant the extension.
For a prospective Dog Haus Area Developer, this means carefully tracking the agreement's expiration date and development progress. Failing to notify Dog Haus within the specified timeframe forfeits the opportunity to extend the agreement, potentially limiting the Area Developer's ability to further expand their Dog Haus presence in the designated territory. The Area Developer should also prepare a comprehensive and compelling development proposal to increase the likelihood of approval from Dog Haus.