What is the deadline for opening a Dog Haus 'Replacement Restaurant' after the closure of the original?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, if, during the Term, Area Developer ceases to operate any Dog Haus Restaurant developed and Opened under this Agreement for any reason, Area Developer must develop a replacement Dog Haus Restaurant (a "Replacement Restaurant") to fulfill Area Developer's obligation to have Open and in operation the required number of Dog Haus Restaurants at the expiration of each Development Period. Area Developer may not, however, cease operating any Dog Haus Restaurant or obtain a Replacement Restaurant without Franchisor's prior written consent. Area Developer must Open each Replacement Restaurant within twelve (12) months after the date of the closing of the Dog Haus Restaurant that it will replace. Dog Haus Restaurants that are operating that are assigned to Affiliates of Area Developer with Franchisor's consent, shall count in determining whether Area Developer has satisfied the Minimum Development Obligation for so long as the applicable Affiliate continues to comply with the terms of this Agreement.
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 ceases to operate a Dog Haus Restaurant must open a 'Replacement Restaurant' within twelve (12) months after the date the original restaurant closed. This obligation is in place to protect the Dog Haus system, trademarks, trade secrets, and associated goodwill. However, the Area Developer must obtain the Franchisor's prior written consent before ceasing operations of any Dog Haus Restaurant or obtaining a Replacement Restaurant.
This requirement ensures that Area Developers maintain the required number of operating Dog Haus Restaurants as per their development agreement. Failing to meet this obligation could lead to a default under the agreement, potentially resulting in termination, unless the failure is due to an event of Force Majeure, which may allow for an extension.
For a prospective franchisee, this means that if a Dog Haus location closes, there is a strict timeline to replace it to remain in compliance with the Area Development Agreement. This clause highlights the importance of careful planning and financial stability to ensure continuous operation and adherence to the development schedule. It also underscores the need for proactive communication with Dog Haus regarding any potential closures and replacement plans.