factual

Is a Dog Haus franchisee required to remodel the Franchised Location as a condition of renewal?

Dog_Haus Franchise · 2025 FDD

Answer 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 must remodel, renovate, modernize, and refurbish the franchised location to meet Dog Haus's current standards for new restaurants as a condition of renewal. This must be completed at the franchisee's expense before the start of the renewal term.

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 costs associated with the remodeling, which can be a significant financial undertaking. Franchisees should carefully consider these costs when deciding whether to renew their franchise agreement.

In addition to the remodeling requirement, the franchisee must also meet several other conditions to be eligible for renewal. These include fulfilling all obligations under the existing agreements, being in good standing, not having committed three or more material defaults within a 12-month period, complying with the current terms and conditions, meeting current qualifications and training requirements, executing a general release, securing personal guarantees from owners and their spouses, paying a renewal fee, and executing the renewal franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.