Does the Dog Haus franchise agreement specify who is responsible for determining if the franchisee has the required training and skill?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor's corporate office as a part of the Pre-Opening Initial Training Program. Franchisee shall not commence operation of the Franchised Restaurant until the Pre-Opening Initial Training Program has been completed. Franchisee shall pay all transportation costs, food, lodging and similar costs incurred by Franchisee for the Principal Owner, General Manager and other supervisorial or managerial personnel to attend the Pre-Opening Initial Training Program, and for Franchisor, the expenses for up to two (2) round trip flights, two (2) hotel rooms and two (2) rental vehicles, and a $60 per diem for each of Franchisor's employees who may travel to provide the Initial Training Program. Franchisee acknowledges that because of Franchisor's superior skill and knowledge with respect to the training and skill required to manage a Dog Haus Restaurant, Franchisor, in its sole discretion, shall determine if Franchisee, the Principal Owner, the General Manager and/other supervisorial or managerial personnel have satisfactorily completed the Pre-Opening Initial Training Program. If the Principal Owner (i) fails to complete the Pre-Opening Initial Training Program within five (5) months after the Effective Date; (ii) does not complete the Pre-Opening Initial Training Program to Franchisor's satisfaction; (iii) does not, during the Pre-Opening Initial Training Program, appear to possess the skills necessary to properly fulfill and discharge the demands and responsibilities required by the Dog Haus System or this Agreement; or (iv) is not acceptable to become a franchisee of Franchisor for any reason whatsoever, in Franchisor's sole and absolute discretion, Franchisor may terminate this Agreement upon five (5) days' written notice to Franchisee and this Agreement shall thereafter be of no further force or effect. Franchisor shall have the right to retain the Initial Franchise Fee. Franchisor and Franchisee acknowledge and agree that the actual damages to be suffered by Franchisor in this circumstance are difficult, if not impossible, to determine, and that, under all the facts and circumstances, this calculation of Franchisor's potential damages and retention of the Initial Franchise Fee by Franchisor, are a reasonable, good-faith estimate of those damages.
- 7.3 Additional Post-Opening Initial Training Programs.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus determines whether the franchisee, principal owner, general manager, and other supervisory or managerial personnel have satisfactorily completed the Pre-Opening Initial Training Program. The FDD states that Dog Haus has superior skill and knowledge with respect to the training and skill required to manage a Dog Haus Restaurant, and therefore, makes the determination in its sole discretion.
Dog Haus may terminate the franchise agreement if the Principal Owner fails to complete the Pre-Opening Initial Training Program within five months of the effective date, does not complete the program to Dog Haus's satisfaction, does not appear to possess the necessary skills, or is not acceptable to become a franchisee for any reason, in Dog Haus's sole and absolute discretion. In the event of termination, Dog Haus has the right to retain the initial franchise fee.
After the restaurant opens, if Dog Haus determines that the franchisee is not operating in compliance with the agreement or manuals, Dog Haus may require the franchisee, principal owner, general manager, and other personnel to attend Post-Opening Additional Training Programs to address any operating deficiencies. Dog Haus may also provide additional Initial Training Programs for new or replacement personnel at the franchisee's request and at Dog Haus's discretion.