Can Dog Haus develop other businesses under different marks near a franchised Dog Haus Restaurant?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus retains the right to develop other businesses that are not competitive, under different marks and systems, regardless of their proximity to a franchisee's Dog Haus Restaurant. This right is unrestricted and at Dog Haus's sole discretion.
This means that as a Dog Haus franchisee, you may find other businesses owned or franchised by Dog Haus operating near your location, as long as they are not considered competitive to the Dog Haus restaurant. These businesses would operate under different brand names and systems.
This clause protects Dog Haus's ability to diversify and explore new business opportunities without being restricted by existing franchise territories. However, it also means that a Dog Haus franchisee could potentially face competition from other businesses affiliated with Dog Haus, even if those businesses operate under different brands. It is important to note that these businesses must not be 'competitive' to the Dog Haus franchise.
Prospective franchisees should carefully consider this clause and evaluate the potential impact of such businesses on their franchise's performance. It would be prudent to inquire with Dog Haus about their plans for developing other business concepts and how they define 'competitive business' in practice to fully understand the potential risks and opportunities.