What form of agreement must an assignee execute when acquiring a Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
As a condition to Franchisor's consent to an Assignment, the assignee must execute Franchisor's Then-Current form of Franchise Agreement for each Franchised Restaurant sold to the assignee.
- 14.4.4 The Proposed Buyer must sign Franchisor's Then-Current form of Franchise Agreement, the terms of which may differ materially from any and all of the terms contained in this Agreement, and which shall supersede this Agreement in all respects, except that the term of replacement Franchise Agreement shall be the remaining term of this Agreement.
In exchange for signing the Then-Current Franchise Agreement, the Proposed Buyer shall receive the rights provided for in this Agreement.
If the Proposed Buyer is an Entity, each owner and each owner's spouse of the Proposed Buyer shall jointly and severally guarantee the Proposed Buyer's performance of its obligations in the Then-Current Franchise Agreement under a Guarantee in the form of Exhibit C.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, as a condition for the franchisor's consent to an assignment of a franchise, the assignee must execute Dog Haus's then-current form of Franchise Agreement for each franchised restaurant sold to the assignee. This means that the person or entity buying the franchise must sign the same franchise agreement that Dog Haus is using at the time of the sale.
Furthermore, the document states that the terms of the then-current Franchise Agreement may differ materially from the original agreement and will supersede the original agreement in all respects, except that the term of the replacement Franchise Agreement will be the remaining term of the original agreement. This indicates that while the new agreement replaces the old one, the length of the franchise term remains the same as what was left on the original agreement.
Additionally, if the proposed buyer is an entity, each owner and each owner's spouse of the proposed buyer must jointly and severally guarantee the proposed buyer's performance of its obligations in the then-current Franchise Agreement under a Guarantee in the form of Exhibit C. This means that individual owners and their spouses must personally guarantee the entity's obligations under the new franchise agreement, adding another layer of security for Dog Haus.