Can a Dog Haus franchisee enter into any lease for a site before franchisor approval?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall deliver a fully executed copy of the Lease to Franchisor promptly following its execution, in the form and on the terms previously accepted by Franchisor, without further request by Franchisor.
The Lease shall provide, unless Franchisor otherwise consents in writing
prior to the execution of the Lease, that: (i) the Lease may not be amended, assigned or sublet without Franchisor's prior written consent; (ii) Franchisor shall have the right (but not the obligation) to succeed to Franchisee's rights under the Lease if Franchisee fails to exercise any option to renew, and or extend the term of the Lease; (iii) upon Franchisee's Default under the Lease, the Landlord shall notify Franchisor in writing at least fifteen (15) days prior to the termination or non-renewal of the Lease; (iv) Franchisor shall have an option to assume the Lease upon the termination or expiration of the Lease for any reason by giving written notice of the election to Franchisee and the Landlord; (v) Franchisee shall have the unrestricted right, without the Landlord's consent, to assign or sublet the Franchised Location to Franchisor, or any franchisee or licensee approved by Franchisor; (vi) Franchisor shall have the right to enter the Franchised Location to remove all of the Dog Haus Marks from the Franchised Location and modify the décor of the Franchised Location so that it no longer resembles, in whole or in part, a Franchised Restaurant if Franchisee fails to do so; and (vii) upon any renewal of the Lease, Franchisor and Landlord will cooperate with each other and use reasonable best efforts to adjust the expiration dates of both the renewal Lease and the Renewal Franchise Agreement, if applicable, so that the term of the renewal Lease will expire contemporaneously with the expiration of the Term of the Renewal Franchise Agreement .
As an alternative to including these provisions in the Lease, Franchisor, Franchisee and the Landlord may execute Franchisor's Then-Current form of an Option to Obtain Lease Assignment.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee must have the lease terms accepted by Dog Haus before executing the lease. The franchisee must deliver a fully executed copy of the lease to Dog Haus promptly after execution, and the lease must be in the form and on the terms previously accepted by Dog Haus. This indicates that a franchisee cannot enter into a lease for a site before Dog Haus gives its approval.
The lease agreement must include specific provisions that protect Dog Haus's interests. These provisions include that the lease cannot be amended, assigned, or sublet without Dog Haus's prior written consent. Dog Haus also has the right to take over the lease if the franchisee fails to renew or extend it, and the landlord must notify Dog Haus at least fifteen days before terminating or not renewing the lease due to franchisee default. Dog Haus also has the option to assume the lease upon termination or expiration for any reason. The franchisee has the right to assign or sublet the location to Dog Haus or any franchisee or licensee approved by Dog Haus without the landlord's consent.
Additionally, Dog Haus has the right to enter the location to remove Dog Haus marks and modify the décor if the franchisee fails to do so. Upon any lease renewal, Dog Haus and the landlord will cooperate to align the expiration dates of the renewal lease and the Renewal Franchise Agreement. As an alternative to including these provisions in the lease, Dog Haus, the franchisee, and the landlord can execute Dog Haus's current form of an Option to Obtain Lease Assignment.
These requirements ensure that Dog Haus maintains control over the location and branding of its franchises, even in situations where the franchisee defaults or the lease is terminated. This protects the Dog Haus system, marks, trade secrets, and associated goodwill. Franchisees should carefully review these lease requirements and ensure they are incorporated into the lease agreement before execution.