What happens to the Dog Haus agreement if a portion of it is deemed invalid?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Any invalidity of any portion of this Agreement shall not affect the validity of the remaining portions and unless substantial performance of this Agreement is frustrated by any such invalidity, this Agreement shall continue in full force and effect.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the agreement remains in effect even if a portion is deemed invalid, unless the invalidity frustrates the substantial performance of the agreement. Specifically, any invalid portion does not affect the validity of the remaining portions of the agreement, and the agreement continues in full force and effect. This clause ensures that the entire agreement doesn't collapse due to a single unenforceable provision.
This "severability" clause is a common feature in franchise agreements. It aims to preserve the overall contract and the relationship between the franchisor and franchisee, even if specific terms are later found to be unenforceable. This protects both parties from unexpected disruptions due to legal challenges or changes in regulations.
For a prospective Dog Haus franchisee, this means that if a court finds a particular clause to be unenforceable, the rest of the agreement will likely remain valid. However, it's important to understand what constitutes "substantial performance." If the invalidated portion is critical to the core purpose of the franchise agreement, it could potentially jeopardize the entire arrangement. Franchisees should seek legal counsel to understand which provisions are most critical and what the implications would be if those provisions were deemed invalid.