Does the Dog Haus franchise agreement grant an exclusive territory to the franchisee?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be permitted to operate your Franchised Restaurant at a specific location that we accept, as described in your Franchise Agreement. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Our acceptance of your Franchised Location will be based upon a variety of factors which may include the viability of the then-current location and demographics including, number of households, household income, vehicular traffic, and number of Franchised Restaurants near the proposed new location. You may face competition from other Franchised Restaurants that we or our affiliate franchise or own and that operate at traditional sites.
You will be granted a protected territory ("Protected Area") of a 1/2 - 5 mile radius from your Franchised Restaurant as described in the Franchise Agreement. Your Protected Area will be designated when you have identified a site for your Franchised Restaurant. Factors that we consider in determining the size of your Protected Area include the demographics, population size, age and income levels, neighboring and adjacent retail tenants, road visibility, traffic patterns, geographical barriers and proximity of other Dog Haus Restaurants or competitors serving the same market area. Provided you are not in default under your Franchise Agreement, we will not own, operate, sell or issue a Franchised Restaurant franchise to another franchisee in your Protected Area. There are no other radius restrictions or minimum population requirements that limit where we can franchise or operate another Franchised Restaurant. You may not relocate your Franchised Restaurant to any other location without our prior written consent.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory under the standard Franchise Agreement. Instead, Dog Haus franchisees are permitted to operate at a specific location that Dog Haus approves. Franchisees may face competition from other franchisees, outlets that Dog Haus owns, other distribution channels, or competitive brands that Dog Haus controls. However, Dog Haus does grant a protected territory, referred to as a "Protected Area", with a radius of 1/2 to 5 miles from the franchisee's restaurant.
The size of the Protected Area is determined by factors such as demographics, population size, age and income levels, neighboring retail tenants, road visibility, traffic patterns, geographical barriers, and the proximity of other Dog Haus restaurants or competitors. Provided the franchisee is not in default under the Franchise Agreement, Dog Haus will not operate or franchise another Dog Haus restaurant within the Protected Area. There are no other radius restrictions or minimum population requirements that limit where Dog Haus can franchise or operate another restaurant.
For franchisees operating a Remote Kitchen, Dog Haus may grant a non-exclusive right to fulfill orders from Food Delivery Service customers in areas adjacent to their Protected Area, but this can be revoked with 30 days' notice. Dog Haus also retains the right to develop, own, and operate franchises outside of a franchisee's Protected Area, sell Dog Haus branded products through various channels, market on the Internet, and establish delivery and catering policies that may affect a franchisee's jurisdiction. Dog Haus may also operate or franchise restaurants at Non-Traditional Venues within or outside the Development Area, without any obligation to compensate the franchisee.