Is a Dog Haus franchisee allowed to sublicense or sublease the right to operate the franchised restaurant?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
en modifications that the Agreement as modified is in full force and effect and identifying the modifications); (b) that Franchisee is not in default under any provision of this Agreement, or if in default, describing the nature thereof in detail; and (c) as to such other matters as Franchisor may reasonably request; and Franchisee agrees that any such statements may be relied upon by Franchisor and any prospective purchaser, assignee or lender of Franchisor.
- 14.2 Assignment by Franchisee. Franchisee acknowledges and agrees that the rights granted to Franchisee under this Agreement are personal and are granted in reliance upon, among other considerations, the individual or collective character, skill, aptitude, attitude, experience, business ability and financial condition and capacity of Franchisee and, if Franchisee is an Entity, that of the Owners. Accordingly, to protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, Franchisee shall not offer, sell, or negotiate the sale of its rights under this Agreement to any third party, either in Franchisee's own name or in the name and/or on behalf of Franchisor, except as otherwise provided in this Agreement. Franchisee acknowledges and agrees that Franchisee has no right, by operation of law or otherwise, to sell, assign, transfer, pledge, donate, encumber or otherwise deal with, directly or indirectly, (i) any interest in this Agreement; or (ii) the right to use the Dog Haus System or the Dog Haus Marks (an "Assignment") without Franchisor's prior written consent. Franchisor shall not unreasonably withhold its consent to an Assignment if, in Franchisor's judgment, Franchisee satisfies the conditions to the Assignment identified in this Agreement.
- 14.2.1 Unless the Parties otherwise agree in writing, Franchisee shall not make any Assignment of this Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by Franchisee. 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.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee is restricted from selling, assigning, transferring, or dealing with any interest in the Franchise Agreement or the right to use the Dog Haus System or Marks without the franchisor's prior written consent. This includes any direct or indirect attempts to sublicense or sublease the rights granted in the agreement. Dog Haus must not unreasonably withhold consent to an assignment if the franchisee meets the conditions outlined in the agreement.
Unless otherwise agreed in writing with Dog Haus, a franchisee cannot make any assignment of the agreement unless it is in conjunction with a concurrent assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by the franchisee. As a condition of Dog Haus's consent, the assignee must execute the then-current form of Franchise Agreement for each franchised restaurant sold to the assignee.
Furthermore, without Dog Haus's prior written consent, which may be withheld at their discretion, a franchisee cannot offer for sale or transfer at public or private auction any rights under the agreement. Additionally, a franchisee is prohibited from pledging, encumbering, or granting any third party a security interest in the agreement without prior written consent from Dog Haus. If such a prohibition is deemed ineffective under applicable law, the franchisee must provide at least ten days' prior written notice to Dog Haus, including the name and address of the secured party and the terms of the security interest.