What is the geographic limit of the Protected Area granted to a Dog Haus franchisee?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
You will be granted a protected territory ("Protected Area") of a 1/2 - 5 mile radius from your Franchised Restaurant as described in the Franchise Agreement. Your Protected Area will be designated when you have identified a site for your Franchised Restaurant. Factors that we consider in determining the size of your Protected Area include the demographics, population size, age and income levels, neighboring and adjacent retail tenants, road visibility, traffic patterns, geographical barriers and proximity of other Dog Haus Restaurants or competitors serving the same market area. Provided you are not in default under your Franchise Agreement, we will not own, operate, sell or issue a Franchised Restaurant franchise to another franchisee in your Protected Area.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee is granted a Protected Area of a 1/2 - 5 mile radius from their Franchised Restaurant. The specific size of the Protected Area is determined by Dog Haus when the franchisee identifies a site for their restaurant.
Several factors influence the size of the Protected Area, including demographics, population size, age and income levels, neighboring retail tenants, road visibility, traffic patterns, geographical barriers, and the proximity of other Dog Haus restaurants or competitors. As long as the franchisee is not in default under the Franchise Agreement, Dog Haus will not operate or franchise another Dog Haus restaurant within the franchisee's Protected Area.
However, the FDD also states that Dog Haus retains the right to develop, own, and operate (or franchise to others) restaurants outside of a franchisee's Protected Area, regardless of their proximity to the franchised restaurant. Dog Haus also reserves the right to sell or distribute Dog Haus branded products at any location within or outside the Protected Area through various channels, including the internet and catering services. This means that while a franchisee has some territorial protection, Dog Haus retains significant flexibility to operate or franchise other locations and distribute products in ways that could compete with the franchisee's business.