Does the 'Development Period' for a Dog Haus franchise include the obligation to continue operating the restaurant after it opens?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
under this Agreement, the form of which may differ from the form of Dog Haus Franchise Agreement attached to Franchisor's Franchise Disclosure Document (the "Disclosure Document") provided to Area Developer prior to the Effective Date.
- Exclusive License. Except as otherwise provided in this Section 2.2 and in Section 2.4, the rights granted to Area Developer under this Agreement are exclusive during the Term so long as Area Developer is in Good Standing and neither Franchisor nor any of its Affiliates shall themselves develop, open and operate, or grant third parties the right to develop, open and operate, Dog Haus Restaurants in the Development Area during the Term. Area Developer acknowledges the Development Area may be subject to pre-existing franchises granted prior to the Effective Date. The Development Area will not contain any areas granted to other franchisees prior to the Effective Date. Existing franchisees may renew or transfer the franchise rights previously granted to them under their Area Development Agreements or Franchise Agreements.
- Adherence to Development Schedule. Area Developer shall satisfy the Minimum Development Obligation by Opening the number of Dog Haus Restaurants in the Development Area within each Development Period as required by the Development Schedule set forth on Exhibit A and by continuing to operate the cumulative number of Dog Haus Restaurants required by the Minimum Development Obligation. Failure to comply with the Development Schedule shall constitute a Default under this Agreement and shall entitle Franchisor to terminate this Agreement, unless the Default results from an event of Force Majeure, in which case, the deadline to Opening a Dog Haus Restaurant may be extended by Franchisor as provided in Section 2.7.
- Rights Reserved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Area Developer has an obligation to continue operating the restaurants they open within the Development Area. The Minimum Development Obligation includes opening a specific number of Dog Haus restaurants within each Development Period, as outlined in Exhibit A, and maintaining the operation of the cumulative number of restaurants required by this obligation.
This means that a Dog Haus Area Developer isn't just responsible for opening restaurants; they must also ensure these restaurants remain open and operational. If an Area Developer ceases to operate a Dog Haus Restaurant, they are required to develop a replacement restaurant to meet their obligations, although this requires the franchisor's prior written consent. The replacement restaurant must be opened within twelve months of the closure of the original restaurant.
Failure to meet the Minimum Development Obligation, including the continued operation of the required number of Dog Haus restaurants, constitutes a default under the Area Development Agreement. This could lead to termination of the agreement, unless the failure is due to an event of Force Majeure, in which case the franchisor may grant an extension for opening a Dog Haus Restaurant.