factual

Can a Dog Haus franchisee assign the agreement separately from other Dog Haus restaurants they own?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 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.

Source: Item 22 — CONTRACTS (FDD page 87)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee is generally not allowed to assign the Franchise Agreement for a single Dog Haus restaurant independently if they own multiple locations. Specifically, unless Dog Haus agrees otherwise in writing, any assignment of the Franchise Agreement must occur in conjunction with a concurrent assignment of all Dog Haus restaurants owned and operated by the franchisee to the same approved assignee. This policy ensures that a franchisee cannot selectively sell off profitable locations while retaining less desirable ones.

This requirement protects the Dog Haus system and brand consistency. By mandating that all locations be transferred together, Dog Haus maintains control over who operates its franchises and ensures that new owners are committed to the entire portfolio of restaurants. This prevents a situation where a franchisee might neglect certain locations after selling off the most valuable ones.

For a prospective franchisee, this means that if they plan to sell their Dog Haus business, they must find a buyer willing to purchase all of their locations simultaneously. This could potentially limit the pool of potential buyers and might affect the sale price or terms of the transaction. It is important for franchisees to consider this restriction when planning their exit strategy and to discuss any potential exceptions with Dog Haus directly.

It is also important to note that any assignment is subject to Dog Haus's approval, and the proposed buyer must meet certain conditions, including executing Dog Haus's current form of Franchise Agreement for each restaurant and completing the initial training program if they are not an existing franchisee. The franchisee must also pay a transfer fee to cover Dog Haus's administrative costs. These requirements further ensure that any new franchisee is qualified and committed to upholding the Dog Haus brand standards.

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.