How does the Dog Haus Franchisor exercise its 'Take-Along Right'?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 9.1.2 Upon the occurrence of a Capital Event, Franchisor shall have the right (the "Take-Along Right") to compel Area Developer to sell and, in such event, Area Developer shall sell the assets of any or all of the Dog Haus Restaurants, regardless of whether such Dog Haus Restaurants are under construction or are Open and operating (collectively the "Take-Along Assets") at the same value attributable to Dog Haus Restaurants owned and operated by Franchisor or its Affiliates at the closing of a Capital Event.
Franchisor shall exercise this Take-Along Right to compel the sale of the Take-Along Assets by Area Developer by providing Area Developer with written notice (the "Take-Along Notice") setting forth the time and place of the closing of the Capital Event, which time and place shall not be less than thirty (30) days after the date of the Take-Along Notice, and the expected price and form of consideration to be paid for the Take-Along Assets at the closing.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, the franchisor has a 'Take-Along Right' in the event of a Capital Event. This right allows Dog Haus to compel an Area Developer to sell the assets of any or all Dog Haus Restaurants, whether under construction or already operating. These assets are referred to as 'Take-Along Assets'.
To exercise this Take-Along Right, Dog Haus must provide the Area Developer with a written notice called the 'Take-Along Notice'. This notice must include the time and place of the closing of the Capital Event. The closing date must be at least thirty days after the date of the Take-Along Notice. The notice must also include the expected price and form of consideration to be paid for the Take-Along Assets at the closing.
The price for the Take-Along Assets will be the same value attributable to Dog Haus Restaurants owned and operated by the franchisor or its affiliates at the closing of a Capital Event. This means the Area Developer will receive the same valuation for their restaurants as the franchisor receives for its own restaurants in the Capital Event. This clause ensures that the Area Developer is treated equitably in the event of a sale.