Does a Dog Haus franchisee receive an exclusive territory?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
The license granted under this Agreement is nonexclusive and Franchisee shall have no territorial or protective rights.
Franchisor and its Affiliates expressly reserve all other rights with respect to the Dog Haus System, the Dog Haus Marks and Dog Haus Restaurants, including the exclusive right, in their discretion, directly or indirectly, without paying Franchisee any compensation or granting Franchisee any rights in the same to: (i) develop, own and operate, and to grant licenses and franchises to third parties to develop, own and operate, Dog Haus Restaurants at any location outside Franchisee's Protected Area regardless of its proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant licenses and franchises to third parties to develop, own and operate, any other business, including a beverage and snack or food business, other than a Competitive Business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location within or outside Franchisee's Protected Area regardless of its proximity to the Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, and license others to sell or distribute, Dog Haus Branded Products, Dog Haus Proprietary Products and Sub-Branded Products from any location within or outside Franchisee's Protected Area regardless of proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail advertising, catering and through other distribution methods; (iv) market on the Internet and use the Dog Haus Marks on the Internet, including all use of websites, domain names, URLs, directory addresses, email addresses, metatags, linking, advertising, cobranding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or license other Dog Haus Restaurants or third parties to deliver and cater at any location within or outside of the Protected Area without compensation to Franchisee, and to establish a delivery and Catering Services policies in the future which may restrict the delivery and Catering Services jurisdiction of Franchisor or of other Dog Haus Franchisees; (vi) develop, own or operate and to grant licenses or franchises to third parties to develop, own or operate Dog Haus Restaurants at Non-Traditional Venues within or outside Franchisee's Protected Area regardless of their proximity to the Franchised Restaurant; (vii) acquire the assets or ownership interests of one or more businesses
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchise agreement does not grant franchisees an exclusive territory. The document states that the license granted is nonexclusive, meaning other Dog Haus restaurants or related businesses could operate nearby. Dog Haus explicitly retains the right to develop, own, and operate additional Dog Haus restaurants or grant licenses to others, even in proximity to a franchisee's location, with the exception of the franchisee's Protected Area.
Dog Haus also reserves the right to develop other businesses, including food businesses (excluding Competitive Businesses), under different marks and systems within or outside the franchisee's Protected Area. Furthermore, Dog Haus can sell or distribute branded products through various channels like the internet, mail order, and catering, without restriction to the franchisee's territory. They can also market and use Dog Haus Marks on the internet without limitations.
This lack of territorial exclusivity means that a Dog Haus franchisee could face direct competition from other company-owned or franchised Dog Haus locations, as well as other related businesses operated by the franchisor. This could impact the franchisee's potential customer base and revenue. However, the franchisor does grant a Protected Area, but the FDD excerpt does not define the extent of the Protected Area. A prospective franchisee should clarify the details of the Protected Area with Dog Haus before signing the Franchise Agreement.