What is the Dog Haus franchisee's responsibility in the event of disputes concerning the Dog Haus Marks or the Dog Haus System?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall have the sole right, either alone or with its Affiliate, to handle disputes with Franchisees and third parties concerning Franchisor's or Franchisor's Affiliates' ownership of, rights in, or Franchisee's use of, the Dog Haus Marks or the Dog Haus System.
Franchisee shall immediately notify Franchisor in writing if Franchisee receives notice, or is informed, of any (i) improper use of any of the Dog Haus Marks or elements of the Dog Haus System, including misuse by Franchisees; (ii) use by any third party of any mark, design, logo or commercial symbol which, in Franchisee's judgment, may be confusingly similar to any of the Dog Haus Marks; (iii) use by any third party of any business practice which, in Franchisee's judgment, unfairly simulates the Dog Haus System in a manner likely to confuse or deceive the public; or (iv) claim, challenge, suit or demand asserted against Franchisee based upon Franchisee's use of the
Dog Haus Marks or the Dog Haus System. Franchisor and/or Franchisor's Affiliates shall have sole discretion to take all action as it deems appropriate, including, without limitation, to take no action, and the sole right to control any legal proceeding or negotiation arising out of any infringement, challenge or claim or otherwise relating to the Dog Haus Marks or the Dog Haus System. Franchisee shall not settle or compromise any claim, suit or demand asserted against it and agrees to be bound by Franchisor's decisions in handling disputes regarding the Dog Haus Marks and the Dog Haus System. Franchisee shall cooperate fully with Franchisor and execute all documents and perform all actions as may, in Franchisor's judgment, be necessary, appropriate or advisable in the defense of all claims, suits or demands and to protect and maintain Franchisor's rights in the Dog Haus Marks and the Dog Haus System. Unless it is established that a third party claim asserted against Franchisee is based directly upon Franchisee's misuse of the Dog Haus Marks or the Dog Haus System, Franchisor agrees to defend Franchisee against the third party claim and indemnify Franchisee for any losses resulting therefore, provided Franchisee has notified Franchisor as soon as practical after learning of the claim and fully cooperates in the defense of the action. Because Franchisor will defend the third party claim, Franchisee is not entitled to be reimbursed for legal or other professional fees or costs paid to independent legal counsel or others in connection with the matter.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisor, either alone or with its affiliates, has the sole right to handle disputes with franchisees and third parties concerning the ownership, rights, or use of the Dog Haus Marks or the Dog Haus System.
A Dog Haus franchisee must immediately notify Dog Haus in writing if they become aware of any improper use of the Dog Haus Marks or elements of the Dog Haus System. This includes misuse by other franchisees, use by a third party of a confusingly similar mark, or any business practice that unfairly simulates the Dog Haus System. The franchisee must also report any claim, challenge, suit, or demand asserted against them based on their use of the Dog Haus Marks or the Dog Haus System.
The Dog Haus franchisee cannot settle or compromise any claim, suit, or demand asserted against them and agrees to be bound by Dog Haus's decisions in handling disputes. The franchisee must cooperate fully with Dog Haus and execute all documents and perform all actions necessary to defend against claims and protect the franchisor's rights. Unless the claim is based on the franchisee's misuse of the Dog Haus Marks or the Dog Haus System, Dog Haus will defend the franchisee against third-party claims and indemnify them for resulting losses, provided the franchisee promptly notifies Dog Haus and fully cooperates in the defense. The franchisee is not entitled to reimbursement for legal fees if Dog Haus defends the claim.