Does the Dog Haus Franchise Agreement include an exhibit related to renewal, termination, transfer, and dispute resolution?
Dog_Haus Franchise · 2025 FDDAnswer 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. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, Item 17 provides a table that summarizes provisions related to renewal, termination, transfer, and dispute resolution, referencing specific sections within the Franchise Agreement (Exhibit A) and the Remote Kitchen Addendum (Exhibit C).
The table outlines various aspects of the franchise relationship, including franchisee obligations upon termination or nonrenewal, conditions for franchisor approval of transfer, and dispute resolution processes. For instance, upon termination, a franchisee must cease using Dog Haus's trademarks and de-identify the franchised restaurant. Transfer of the franchise requires Dog Haus's prior written consent, which will not be unreasonably withheld, and the proposed transferee must meet certain qualifications, including completing the initial training program and signing the then-current Franchise Agreement.
Regarding dispute resolution, the Dog Haus Franchise Agreement stipulates that disputes must first be attempted through mediation in Los Angeles, California. If mediation fails, unresolved claims will be submitted to binding arbitration, also in Los Angeles, California. The fees and expenses for both mediation and arbitration will be shared equally between the franchisee and Dog Haus, subject to applicable state law. The agreement also specifies that all proceedings will be held in Los Angeles County, California, subject to applicable state law, as detailed in the State Specific Addenda (Exhibit H).