What is a Dog Haus franchisee prohibited from doing after the termination or expiration of the Franchise Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, upon the expiration or termination of Franchisee's rights granted under this Agreement, Franchisee shall immediately cease to use all Dog Haus Trade Secrets, Dog Haus Confidential Information, the Dog Haus Marks, and any confusingly similar trademark, service mark, trade name, logotype, or other commercial symbol or insignia.
Franchisee shall at its own cost immediately return the Manuals and all written materials incorporating Dog Haus Trade Secrets and all copies of any of the same to Franchisor.
Franchisee shall at its own cost make cosmetic changes to the Franchised Restaurant and the Franchised Location so that they no longer contain or resemble Franchisor's proprietary designs and shall remove all Dog Haus identifying materials and distinctive Dog Haus cosmetic features and finishes, furniture, soffits, interior wall coverings and colors, exterior finishes and colors and signage from the Franchised Location that Franchisor may reasonably direct.
- 15.3 Non-Competition After Expiration or Termination of Agreement.
Except as Franchisor otherwise approves in writing, commencing upon the date of (i) an Assignment permitted under Article 14, (ii) the Expiration Date of this Agreement, (iii) the termination of this Agreement (regardless of the cause for
termination), or (iv) a final court order (after all appeals have been taken): with respect to any of the foregoing events or with respect to enforcement of this Section 15.3, and continuing for an uninterrupted period of two (2) years thereafter, Franchisee and each Owner shall not, own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business located at the Franchised Location or within two (2) miles of the Franchised Location or any other Dog Haus Restaurants; provided, however, the restrictions stated in this Section 15.3 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Franchisee.
- 15.4 Violation of Covenants.
If Franchisee or any Restricted Person shall commit any violation of Section 15.3 during the two (2) year period following (i) the expiration or termination of this Agreement; (ii) the occurrence of any Assignment during the Term; (iii) the cession of the Restricted Person's relationship with Franchisee; or (iv) a final court order (after all appeals have been taken) with respect to any of the foregoing events or with respect to enforcement of Section 15.3, in addition to all other remedies available to Franchisor, Franchisee or the Restricted Person shall pay Franchisor, throughout the twenty-four (24) month period, five percent (5%) of the revenue derived by Franchisee from the sale of all products and services and all other income of every kind and nature ("Post Termination Gross Sales") of the Competitive Business.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, following the expiration or termination of the Franchise Agreement, a franchisee faces several restrictions to protect the Dog Haus system and brand. Specifically, the franchisee must immediately stop using Dog Haus's trade secrets, confidential information, and trademarks, including any confusingly similar commercial symbols. The franchisee is also required to return all manuals and written materials containing Dog Haus trade secrets to the franchisor at their own expense.
To further ensure separation from the Dog Haus brand, the franchisee must make cosmetic changes to the restaurant and location to remove any resemblance to Dog Haus's proprietary designs. This includes removing all identifying materials, distinctive cosmetic features, furniture, interior and exterior finishes, colors, and signage as directed by Dog Haus. These measures prevent any continued association with the Dog Haus brand and ensure a clear distinction between the former franchise and the Dog Haus system.
Additionally, for a period of two years after the termination or expiration, the franchisee and each owner are prohibited from owning, engaging in, or rendering services to any Competitive Business located at the Franchised Location or within two miles of the Franchised Location or any other Dog Haus Restaurants. This restriction applies whether the involvement is as an investor, partner, lender, director, officer, manager, employee, consultant, representative, or agent. If the franchisee violates this non-compete clause, they must pay Dog Haus five percent of the revenue derived from the Competitive Business throughout the twenty-four month period. However, this non-compete does not apply to an owner after two years from the date they cease association with the franchisee.