Who determines or approves the location of each Dog Haus Restaurant under the Franchise Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We will determine or approve the location of each Dog Haus Restaurant under the Franchise Agreement at the time each Franchise agreement is signed, and our then-current standards for approving sites and determining Development Areas will apply. 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 Development Area, regardless of its 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 of the Development 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 of your Development 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.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisor determines or approves the location of each Dog Haus Restaurant under the Franchise Agreement. This determination occurs when each Franchise Agreement is signed, and Dog Haus's then-current standards for approving sites and determining Development Areas will be applied.
This means that while franchisees may propose locations, Dog Haus retains the ultimate authority to decide whether a site is suitable for a restaurant. This is a common practice in franchising, as the franchisor has a vested interest in ensuring that new locations are likely to succeed and uphold the brand's image. Dog Haus bases its acceptance of a franchised location on factors such as the viability of the location, demographics including the number of households, household income, vehicular traffic, and the number of franchised restaurants near the proposed new location.
Dog Haus also grants franchisees a protected territory, referred to as a "Protected Area", typically with a radius of 1/2 to 5 miles from the restaurant. The size of this area is determined by Dog Haus based on factors like demographics, population size, age and income levels, neighboring retail tenants, road visibility, traffic patterns, geographical barriers, and the proximity of other Dog Haus restaurants or competitors. While franchisees are given this protected area, Dog Haus retains significant rights outside of it, including the right to develop, own, and operate other franchised restaurants or businesses. Dog Haus also reserves the right to sell or distribute Dog Haus branded products through various channels, including the internet, without compensating the franchisee.