What is the Dog Haus definition of 'Losses' as it pertains to the General Release Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.5 "Losses" means all damages, debts, liabilities, accounts, suits, awards, judgments, payments, diminutions in value and other losses, costs and expenses, however suffered or characterized, all interest thereon, all costs and expenses of investigating any Claim, reference proceeding, lawsuit or arbitration and any appeal therefrom, all actual attorneys' fees incurred in connection therewith, whether or not such Claim, reference proceeding, lawsuit or arbitration is ultimately defeated and, all amounts paid incident to any compromise or settlement of any such Claim, reference proceeding, lawsuit or arbitration.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the term "Losses" within the context of the General Release Agreement encompasses a wide range of potential financial detriments. It includes all damages, debts, liabilities, accounts, suits, awards, judgments, payments, diminutions in value, and other losses. This definition is broad, covering various ways a franchisee might suffer financially.
Furthermore, the definition extends to include all costs and expenses, regardless of how they are suffered or characterized, along with any interest accrued on these amounts. It specifically mentions the costs associated with investigating any claim, reference proceeding, lawsuit, or arbitration, as well as any appeals related to these actions. This means that even the expenses incurred while looking into a potential issue are considered part of the "Losses".
Importantly, the definition explicitly includes all actual attorneys' fees incurred in connection with these matters, irrespective of whether the claim, proceeding, lawsuit, or arbitration is ultimately successful. It also covers all amounts paid in connection with any compromise or settlement of such claims. This comprehensive definition suggests that Dog Haus aims to include all possible financial burdens a franchisee might face when determining the scope of the General Release Agreement.