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Does the Dog Haus Franchise Agreement address renewal, termination, transfer, and dispute resolution specifically for Remote Kitchens?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

the Franchise Agreement; engaging | | | | in fraudulent, dishonest, unethical, immoral or similar | | | | conduct in connection with your operation of the Franchised | | | | Restaurant; and engaging in any lewd or immoral conduct | | | | whether or not in connection with your operation of the | | | | Franchised Restaurant (subject to state law). |

Section In
Franchise
Agreement
(Exhibit A) and
in Remote
Kitchen
Addendum
Provision (Exhibit C) Summary
Non-curable defaults pursuant to Article 16 of your Franchise
Agreement (subject to state law). (Remote Kitchen Addendum).
i. Franchisee's Franchise You must cease use of our
trademarks, de-identify the
obligations on Agreement Franchised Restaurant, pay all amounts due to us, and return the
termination/ Sections 17.1 - Manuals. We may, at our option, assume all telephone numbers
nonrenewal 17.4, 17.7 and for the Franchised Restaurant. You must, at our option, cancel or
17.8; Remote assign to us your rights to any Internet websites or web pages or
Kitchen e-mail addresses or assumed, fictitious or corporate names that
Addendum contain the Dog Haus Marks. See also "r" below.
Section 8.1
Post-termination obligations pursuant to Article 17 of your
Franchise Agreement. (Remote Kitchen Addendum)
j. Assignment of Franchise No restriction on our right to assign.
contract by Franchisor Agreement
Section 14.1
k. "Transfer" by Franchise Includes transfer of the Franchise Agreement or change in
Franchisee - definition Agreement ownership of the business entity that owns it.
Section 14.2;
Remote Kitchen
Addendum
Article 7
l. Franchisor's approval Franchise Transfers require our prior written consent, which will not be
of transfer by Agreement unreasonably withheld.
Franchisee Section 14.2;
Remote Kitchen
Addendum
Article 7
m. Conditions for Franchise The proposed transferee must qualify, successfully complete our
Franchisor's approval Agreement initial training program, sign our then-current Franchise
of transfer Sections 14.2 Agreement (provided, that the term of the new Franchise
and 14.4; Agreement will be the remaining term of the existing Franchise
Remote Kitchen Agreement), provide us with a guarantee signed by all equity
Addendum owners of the proposed franchisee and their spouses (if the
Article 7 proposed franchisee is an entity), the proposed transferee must
conform the Franchised Restaurant with our then current
appearance and design standard and equipment specifications
applicable to new Dog Haus Restaurants, and you must be in
good standing, sign a general release, sign a guarantee of the
transferee's obligations under the new Franchise Agreement in
our favor, pay the transfer fee and the proposed transferee must
conduct a promotional campaign and spend the then-current
required transfer marketing expenditure. See also "r" below. If
the Franchise Agreement has been signed under an Area

| | Provision | Addendum | Summary | |----|---------------------------------------------------------------------------------|------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | (Exhibit C) | Development Agreement, except as described below, you must concurrently assign all other existing Franchise Agreements to the same assignee. Transfer restrictions pursuant to Article 14 of the Franchise Agreement. (Remote Kitchen Addendum) | | n. | Franchisor's right of first refusal to acquire Franchisee's business | Franchise Agreement Section 14.3; Remote Kitchen Addendum Article 7 | We can match any offer for your business. Transfer restrictions pursuant to Article 14 of the Franchise Agreement. (Remote Kitchen Addendum) | | o. | Franchisor's option to purchase Franchisee's business | Franchise Agreement Section 17.5 | When your Franchise Agreement expires or is terminated, we have the option to purchase some or all of the assets of the Franchised Restaurant and some or all of your assets related to the Franchised Restaurant. | | p. | Death or disability of Franchisee | Franchise Agreement Section 14.5 | Your spouse, heirs or personal representative has 180 days to purchase your interest or complete an assignment of your interest to a qualified, approved third party, subject to the transfer provisions. | | q. | Non-competition covenants during the term of the franchise | Franchise Agreement Section 15.2 | You are prohibited from: (i) diverting any present or prospective Dog Haus customer to any competitor, or performing any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) owning or having any interest in a "Competitive Business" with Dog Haus Restaurants. A "Competitive Business" is defined as any restaurant business that prepares, offers and sells gourmet hot hamburgers, chicken, plant-based food dogs, sausages, products or any combination of these products as primary menu items and any business that looks like, copies, imitates, or operates with similar trade dress or décor to Dog Haus Restaurants. (subject to state law) | | r. | Non-competition covenants after the franchise is terminated or expires | Franchise Agreement Section 15.3 | For 2 years following the expiration or termination of your Franchise Agreement, you cannot own or have any interest in a competitive business within 2 miles of the Franchised Location or any other Franchised Restaurant. If you violate the post-term covenant not to compete, you must pay us, throughout the 2 year period following the termination, transfer, or expiration of your Franchise Agreement, 6% of the gross revenue of any business that provides similar services or products. (subject to state law) |

Section In
Franchise
Agreement
(Exhibit A) and
in Remote
Kitchen
Addendum
Provision (Exhibit C) Summary
s. Modification of the Franchise The Franchise Agreement can be modified or amended only by
agreement Agreement written agreement of all of the parties. The Manuals are subject
Sections 6.5 and to change at any time. You must comply with any changes set
21.5; Remote forth in the Manuals. Remote Kitchen Addendum can be
Kitchen modified or amended only by written agreement of all the
Addendum parties. (Remote Kitchen Addendum)
Section 9.2
t. Integration/ merger Franchise Only the terms of the Franchise Agreement and other related
clause Agreement written agreements are binding (subject to applicable state law).
Section 21.5; Any
representations or
promises
outside
the disclosure
Remote Kitchen document and franchise agreement may not be enforceable.
Addendum Only the terms of the Franchise Agreement and Remote Kitchen
Section 9.2;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, Item 17 addresses renewal, termination, transfer, and dispute resolution in both the standard Franchise Agreement and the Remote Kitchen Addendum. The table in Item 17 provides a summary of key provisions related to these topics, referencing specific sections in both the Franchise Agreement (Exhibit A) and the Remote Kitchen Addendum (Exhibit C). This indicates that the terms governing these critical aspects of the franchise relationship may differ between traditional Dog Haus locations and Remote Kitchens, necessitating a careful review of both documents.

For instance, the FDD specifies that non-curable defaults are subject to Article 16 of the Franchise Agreement but also mentions the Remote Kitchen Addendum in this context. Similarly, post-termination obligations are governed by Article 17 of the Franchise Agreement, with additional stipulations outlined in the Remote Kitchen Addendum. This suggests that franchisees operating Remote Kitchens may have slightly different obligations upon termination compared to those operating traditional locations.

Regarding transfer, the definition includes the transfer of the Franchise Agreement or a change in ownership of the business entity, referencing both Section 14.2 of the Franchise Agreement and Article 7 of the Remote Kitchen Addendum. Franchisor approval is required for transfers, and the conditions for approval include the transferee meeting qualifications, completing training, and signing the then-current Franchise Agreement, with further stipulations in Article 7 of the Remote Kitchen Addendum. Dispute resolution involves mediation in Los Angeles, California, and if unresolved, binding arbitration in the same location, as detailed in Sections 19.1 and 19.2 of the Franchise Agreement. These provisions apply to both standard franchises and Remote Kitchens, ensuring a structured process for conflict resolution.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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