Can a Dog Haus franchisee face competition from other franchisees?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
fore the date of the Annual Franchise Conference, whether or not you attend the Annual Franchise Conference. (Franchise Agreement, Section 7.29).
ITEM 12 TERRITORY
Franchise Agreement
You will be permitted to operate your Franchised Restaurant at a specific location that we accept, as described in your Franchise Agreement. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Our acceptance of your Franchised Location will be based upon a variety of factors which may include the viability of the then-current location and demographics including, number of households, household income, vehicular traffic, and number of Franchised Restaurants near the proposed new location. You may face competition from other Franchised Restaurants that we or our affiliate franchise or own and that operate at traditional sites.
You will be granted a protected territory ("Protected Area") of a 1/2 - 5 mile radius from your Franchised Restaurant as described in the Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee may face competition from other franchisees. Specifically, the FDD states that when operating a Franchised Restaurant, a franchisee will not receive an exclusive territory and may face competition from other franchisees. This means that while Dog Haus may grant a protected area, there is still a possibility that other franchisees can operate nearby.
Dog Haus grants a protected area of 1/2 to 5 miles around a franchisee's restaurant. Within this protected area, Dog Haus promises not to open or franchise another Dog Haus restaurant, provided the franchisee is not in default of their agreement. However, outside this protected area, Dog Haus retains the right to develop, own, and operate, or grant franchises to others, regardless of proximity to the franchisee's location.
For prospective Dog Haus franchisees, this highlights the importance of carefully evaluating the location and market demographics before signing the franchise agreement. While a protected area offers some security, the potential for competition from other franchisees outside that area exists. Franchisees should also consider competition from other channels of distribution or competitive brands that Dog Haus controls.