Is the Dog Haus franchisor obligated to assist in site selection?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Once Franchisee has identified the new Franchised Location, Franchisor has approved it, and the Lease has been submitted to Franchisor to allow Franchisor at least fifteen (15) days to confirm that the provisions set forth in Section 5.2 have been included in the proposed Lease and that the Landlord and Franchisee have executed an Option to Obtain Lease Assignment in the form specified by Franchisor, Franchisor will prepare an addendum to Exhibit A and provide it to Franchisee.
If Franchisee fails to secure the new Franchised Location within twelve (12) months of the date of Franchisor's approval of the new Franchised Location, Franchisor shall have the right to estimate and bill Franchisee for Royalty Fees for the time period following the expiration of the twelve (12) month period based upon the Royalty Fees received for the Franchised Restaurant during the identical periods of the last preceding
calendar year plus an additional ten percent (10%) of such amount or, if the Franchised Restaurant was not in operation during the identical period of the last preceding year, based upon the average Royalty Fees paid during the number of months the Franchised Restaurant was in operation plus an additional ten percent (10%) of that amount.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
Based on the 2025 Dog Haus Franchise Disclosure Document, the franchisor is not obligated to assist in site selection. However, once a franchisee identifies a location, Dog Haus must approve it. The franchisee must submit the lease to Dog Haus at least fifteen days before execution to allow Dog Haus to confirm that the provisions in Section 5.2 have been included in the proposed Lease and that the Landlord and Franchisee have executed an Option to Obtain Lease Assignment in the form specified by Franchisor. If these conditions are met, Dog Haus will prepare an addendum to Exhibit A and provide it to the franchisee.
If the franchisee fails to secure a location within twelve months of Dog Haus's approval, Dog Haus has the right to estimate and bill the franchisee for Royalty Fees. The fees will be based on the Royalty Fees received for the Franchised Restaurant during the identical periods of the last preceding calendar year plus an additional ten percent of such amount. If the Franchised Restaurant was not in operation during the identical period of the last preceding year, the fees will be based upon the average Royalty Fees paid during the number of months the Franchised Restaurant was in operation plus an additional ten percent of that amount.
This process highlights the importance of a franchisee's independent site selection efforts and the need to secure a location promptly after approval to avoid incurring royalty fees on a non-operational restaurant. While Dog Haus does not actively assist in finding a location, their approval process and lease review serve to protect their brand and ensure the suitability of the site for a Dog Haus restaurant.