Can Franchisor or its Affiliates develop Dog Haus Restaurants in the Development Area?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
tem to develop, open and operate the cumulative number of Dog Haus Restaurants set forth in Exhibit A in the Development Area during the Term. Except as provided in Section 2.6, Area Developer may not develop, open or operate more Dog Haus Restaurants than the number of Dog Haus Restaurants set forth on Exhibit A during the Term. Area Developer shall not subcontract, sublicense, share, divide or partition this Agreement or enter into any agreement with any third party providing for the right to develop, open or operate Dog Haus Restaurants or to use the Dog Haus Marks or the Dog Haus System and nothing in this Agreement will be construed as granting Area Developer the right to do so. The Parties shall execute Franchisor's Then-Current Franchise Agreement for each Dog Haus Restaurant to be developed, opened and operated by Area Developer under this Agreement, the form of which may differ from the form of Dog Haus Franchise Agreement attached to Franchisor's Franchise Disclosure Document (the "Disclosure Document") provided to Area Developer prior to the Effective Date.
- Exclusive License. Except as otherwise provided in this Section 2.2 and in Section 2.4, the rights granted to Area Developer under this Agreement are exclusive during the Term so long as Area Developer is in Good Standing and neither Franchisor nor any of its Affiliates shall themselves develop, open and operate, or grant third parties the right to develop, open and operate, Dog Haus Restaurants in the Development Area during the Term. Area Developer acknowledges the Development Area may be subject to pre-existing franchises granted prior to the Effective Date. The Development Area will not contain any areas granted to other franchisees prior to the Effective Date. Existing franchisees may renew or transfer the franchise rights previously granted to them under their Area Development Agreements or Franchise Agreements.
- Adherence to Development Schedule. Area Developer shall satisfy the Minimum Development Obligation by Opening the number of Dog Haus Restaurants in the Development Area within each Development Period as required by the Development Schedule set forth on Exhibit A and by continuing to operate the cumulative number of Dog Haus Restaurants required by the Minimum Development Obligation.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the rights granted to an Area Developer are exclusive during the term of the agreement, provided the Area Developer remains in good standing. This exclusivity means that, generally, neither Dog Haus nor its affiliates will develop, open, or operate Dog Haus restaurants, or grant third parties the right to do so, within the Development Area during the term of the agreement. However, this exclusivity is subject to certain exceptions.
Specifically, the Development Area may be subject to pre-existing franchises granted before the effective date of the Area Development Agreement. Existing franchisees may also renew or transfer their previously granted franchise rights. Dog Haus also retains rights to develop, own, and operate Dog Haus Restaurants outside the Development Area, regardless of their proximity to the Development Area.
Dog Haus also reserves the right to develop, open, and operate other businesses, excluding Competitive Businesses, under different marks and systems within and outside the Development Area. They can also sell or distribute Dog Haus branded products through various methods, including the internet and catering, within and outside the Development Area. These stipulations ensure that while the Area Developer has certain exclusive rights, Dog Haus retains the flexibility to manage and expand its brand and offerings.