Is a Dog Haus franchisee authorized to make any contract, agreement, warranty, or representation on the franchisor's behalf?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
The 2025 Dog Haus Franchise Disclosure Document states that franchisees are restricted from offering, selling, or negotiating the sale of their rights under the Franchise Agreement to any third party, whether on their own behalf or on behalf of Dog Haus, unless explicitly permitted in the agreement.
This restriction means a Dog Haus franchisee cannot transfer or assign their rights or obligations without the franchisor's prior written consent. Dog Haus retains control over who can operate a franchise within its system. The franchisor will not unreasonably withhold consent to an assignment if the franchisee meets the conditions outlined in the agreement.
Specifically, franchisees must obtain Dog Haus's consent before selling, assigning, transferring, pledging, donating, or encumbering any interest in the agreement or the right to use the Dog Haus system or trademarks. This ensures that the franchisee cannot make agreements or representations that bind the franchisor without explicit authorization. This protects the Dog Haus brand and system standards by ensuring that only approved parties can take over a franchise.
If a franchisee violates these restrictions, it could lead to a breach of contract and potential termination of the franchise agreement. Therefore, it is crucial for prospective franchisees to understand these limitations and seek written consent from Dog Haus before attempting to transfer any rights or obligations under the agreement.