What must a Dog Haus franchisee do regarding remodeling to comply with renewal conditions?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee may exercise its Renewal Rights only if all of the following conditions precedent are satisfied prior to the Expiration Date or Renewal Expiration Date, as the case may be: (i) Franchisee shall have fully performed all of its obligations under this Agreement, any Area Development Agreement and all other agreements binding Franchisor and Franchisee and shall be in Good Standing on the date of the Renewal Notice, on the date of Franchisor's execution of the Renewal Franchise Agreement and on the Expiration Date of Renewal Expiration Date, as the case may be; (ii) Franchisee shall, prior to the commencement date of the Renewal Term, undertake and complete at its expense, the remodeling, renovation, modernization, and refurbishing of the Franchised Location and the Franchised Restaurant to comply with Franchisor's Then-Current specifications and standards for new Dog Haus Restaurants; (iii) Franchisee shall not have committed three (3) or more material Defaults during any twelve (12) month period during the then-expiring Initial Term or Renewal Term, as the case may be, which were subject to notices of Default issued by Franchisor, whether or not the Defaults were cured; (iv) Franchisee shall continue to comply with the terms and conditions of this Agreement; (v) Franchisee shall have satisfied Franchisor's Then-Current qualifications and training requirements; (vi) Franchisee shall have executed and delivered to Franchisor a General Release; (vii) each Owner and each Owner's spouse shall have executed and delivered to Franchisor a personal guarantee, in a form then satisfactory to Franchisor, jointly and severally guaranteeing Franchisee's performance of its obligations under the Renewal Franchise Agreement; (viii) Franchisee shall have paid Franchisor a Renewal Fee when Franchisee issues the Renewal Notice to Franchisor; and (ix) Franchisee shall have executed the Renewal Franchise Agreement and delivered it to Franchisor.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee seeking to renew their franchise agreement must, prior to the commencement of the renewal term, complete the remodeling, renovation, modernization, and refurbishing of the franchised location and restaurant. This work must bring the location into compliance with Dog Haus's then-current specifications and standards for new restaurants. This is a condition precedent to exercising the Renewal Right.
This requirement ensures that all Dog Haus locations maintain a consistent brand image and meet current customer expectations. The franchisee is responsible for covering all expenses associated with the remodeling and renovation work. This could involve significant capital expenditure, and franchisees should factor this cost into their long-term financial planning.
Failure to complete the required remodeling and meet the updated standards will prevent the franchisee from renewing their agreement. Prospective franchisees should carefully review Dog Haus's current specifications and standards for new restaurants to understand the potential scope and cost of future remodeling obligations. It would be prudent to discuss these potential costs and requirements with existing franchisees during the due diligence process.