factual

Can Dog Haus deliver and cater within or outside of a franchisee's Protected Area?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

ce customers in geographic areas immediately adjacent to your Protected Area who are not located within the protected area of another Dog Haus Restaurant. We may revoke this grant for any reason or no reason upon 30 days' prior written notice to you. You must advise all Food Delivery Services of these delivery restrictions imposed on you.

We expressly reserve the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly to: (i) develop, own and operate, and to grant franchises to third parties to develop, own and operate, Franchised Restaurants outside of your Protected Area, regardless of their proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant franchises to third parties to develop, own and operate any other business, other than a competitive business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location regardless of their proximity to your Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, or license others to sell or distribute, Dog Haus Branded Products at any location within or outside your Protected Area regardless of its proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail marketing, catering and through other distribution methods; (iv) market on the Internet and use the Dog Haus Marks on the Internet, including all use of Websites, domain names, URLs, directory addresses, email addresses, metatags, linking, marketing, co-branding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or to license to other Franchised Restaurants or third parties to deliver and cater at any location within or outside of your Protected Area without compensation to you, and to establish a delivery and catering policy in the future which may restrict the delivery and catering jurisdiction of any Dog Haus franchisee; and (vi) own or operate and to franchise or license others to own or operate Franchised Restaurants at any Non-Traditional Venue within and outside your Protected Area regardless of their proximity to your Franchised Restaurant. We are not required to pay you any compensation if we exercise any of the rights specified above. "Non-Traditional Venues" mean a broad variety of atypical sites, including a site or location within a captive market site, another primary business or in conjunction with other businesses or at institutional settings including office buildings and business complexes, arenas, stadiums and entertainment venues, health clubs and recreational facilities, beaches, parks, prisons, airports, train and bus stations, travel plazas, toll road facilities and other transportation terminals and related facilities, educational, medical, governmental and other types of institutional facilities, restaurant-in retail locations or restaurant-in-store (for example, a cafe within a grocery store), trucks, cafeterias, casinos, food delivery fulfillment centers, food courts operated by a master concessionaire and any site for which the lessor, owner or operator limits the operation of its beverages and/or food service facilities to a master concessionaire or contract food service provider. Your Franchise Agreement may be amended, if necessary, for certain types of Non-Traditional Venues.

Source: Item 12 — TERRITORY (FDD pages 53–57)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus maintains significant control over delivery and catering services, both within and outside of a franchisee's protected area. Specifically, Dog Haus reserves the right to deliver and cater, or to license other franchisees or third parties to do so, at any location, irrespective of whether it falls within a franchisee's protected area. This can occur without any compensation to the franchisee whose protected area is affected. Furthermore, Dog Haus retains the authority to establish delivery and catering policies that may restrict a franchisee's delivery and catering jurisdiction.

Dog Haus may allow franchisees to offer delivery and catering services within their protected area, including contiguous areas, but only with written consent, which Dog Haus may grant or deny at its sole discretion. These services are subject to terms and conditions established by Dog Haus, potentially including restrictions on the types of products and services offered and the geographic area served. Franchisees must adhere to Dog Haus's off-site policies and procedures, which may permit other franchisees or third parties to provide catering and delivery services within a franchisee's protected area without compensation to that franchisee.

Dog Haus also reserves the right to implement a non-exclusive delivery system, such as call-ahead, internet-order, or mobile application programs, in which franchisees are required to participate and pay associated fees and charges. Franchisees may be required to use third-party delivery services with which Dog Haus has a national contract and may not contract with other delivery platforms without written approval. These policies may also allow other franchised restaurants or third parties to provide catering and delivery services in a franchisee's protected area without compensating the franchisee. In the future, Dog Haus may impose restrictions preventing franchisees from providing catering and delivery services outside of their protected areas.

For prospective Dog Haus franchisees, these terms highlight the importance of understanding the potential limitations and competitive pressures within their protected area. While a protected area is granted, Dog Haus retains considerable flexibility in managing delivery and catering services, which could impact a franchisee's revenue and market share. It is crucial for franchisees to discuss these policies with Dog Haus to fully understand the implications and potential restrictions on their operations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.