Can Dog Haus establish a delivery and catering policy that restricts a Dog Haus franchisee's jurisdiction?
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 establish delivery and catering policies that may restrict a franchisee's delivery and catering jurisdiction. This means that even within a franchisee's protected area, Dog Haus can implement rules that limit where and how a franchisee can offer these services. Dog Haus can also license other franchisees or third parties to deliver and cater within or outside of a franchisee's protected area.
This reservation of rights has significant implications for prospective Dog Haus franchisees. While a franchisee may be granted a protected area, Dog Haus maintains control over delivery and catering services, which are increasingly important revenue streams for restaurants. The franchisee may be required to use specific third-party delivery services designated by Dog Haus, and they may not be allowed to contract with other delivery platforms without written approval.
Dog Haus also states that these policies may allow other franchised restaurants or third parties to provide catering and delivery services in a franchisee's protected area without any compensation to the franchisee. Furthermore, Dog Haus may impose restrictions in the future that prevent a franchisee from providing catering and delivery services outside of their protected area. This could limit a franchisee's ability to expand their customer base and revenue through these channels.
In summary, while Dog Haus franchisees are granted a protected area, their control over delivery and catering within that area is not guaranteed and is subject to change at Dog Haus's discretion. Prospective franchisees should carefully consider these limitations and discuss with Dog Haus how these policies might impact their potential revenue and business operations.