What happens after a Dog Haus franchisee executes the lease for the Franchised Location?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
no later than one hundred eighty (180) days after the Effective Date and provide Franchisor with a lease abstract in the form prescribed by Franchisor. Franchisor may voluntarily, and without obligation, assist Franchisee in selecting an acceptable site for the Franchised Location. Franchisee acknowledges its sole responsibility for finding the Franchised Location.
- 5.2 Lease for Franchised Location. Franchisee shall not create any obligations on Franchisor's behalf or grant the Landlord any rights against Franchisor, or agree to any term, condition or covenant in the Lease which are inconsistent with any provision of this Agreement. Franchisee shall deliver a fully executed copy of the Lease to Franchisor promptly following its execution, in the form and on the terms previously accepted by Franchisor, without further request by Franchisor. The Lease shall provide, unless Franchisor otherwise consents in writing
prior to the execution of the Lease, that: (i) the Lease may not be amended, assigned or sublet without Franchisor's prior written consent; (ii) Franchisor shall have the right (but not the obligation) to succeed to Franchisee's rights under the Lease if Franchisee fails to exercise any option to renew, and or extend the term of the Lease; (iii) upon Franchisee's Default under the Lease, the Landlord shall notify Franchisor in writing at least fifteen (15) days prior to the termination or non-renewal of the Lease; (iv) Franchisor shall have an option to assume the Lease upon the termination or expiration of the Lease for any reason by giving written notice of the election to Franchisee and the Landlord; (v) Franchisee shall have the unrestricted right, without the Landlord's consent, to assign or sublet the Franchised Location to Franchisor, or any franchisee or licensee approved by Franchisor; (vi) Franchisor shall have the right to enter the Franchised Location to remove all of the Dog Haus Marks from the Franchised Location and modify the décor of the Franchised Location so that it no longer resembles, in whole or in part, a Franchised Restaurant if Franchisee fails to do so; and (vii) upon any renewal of the Lease, Franchisor and Landlord will cooperate with each other and use reasonable best efforts to adjust the expiration dates of both the renewal Lease and the Renewal Franchise Agreement, if applicable, so that the term of the renewal Lease will expire contemporaneously with the expiration of the Term of the Renewal Franchise Agreement . As an alternative to including these provisions in the Lease, Franchisor, Franchisee and the Landlord may execute Franchisor's Then-Current form of an Option to Obtain Lease Assignment. If Franchisor elects to succeed to Franchisee's rights under the Lease, Franchisee shall assign to Franchisor all of its right, title and interest in and to the Lease and take all further action that Franchisor, in its sole and absolute discretion, may deem necessary or advisable to effect the assignment within ten (10) days after written demand by Franchisor to do so. Franchisor may voluntarily (without obligation) assist Franchisee in locating an acceptable site for the Franchised Restaurant. Franchisor's acceptance of any proposed Lease is based solely on Franchisor's own interests.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, after a franchisee executes the lease for their franchised location, they must promptly deliver a fully executed copy of the lease to Dog Haus. This copy must be in the form and on the terms that Dog Haus previously accepted, without needing any further request from Dog Haus. The lease terms must also include specific provisions that protect Dog Haus's interests.
The lease should state that it cannot be amended, assigned, or sublet without Dog Haus's prior written consent. Dog Haus has the right, but not the obligation, to take over the franchisee's rights under the lease if the franchisee fails to renew or extend the lease term. If the franchisee defaults on the lease, the landlord must notify Dog Haus in writing at least 15 days before terminating or not renewing the lease. Dog Haus also has the option to assume the lease if it terminates or expires for any reason, provided they give written notice to both the franchisee and the landlord.
Furthermore, the franchisee has the unrestricted right to assign or sublet the franchised location to Dog Haus or any franchisee or licensee approved by Dog Haus, without needing the landlord's consent. Dog Haus has the right to enter the franchised location to remove all Dog Haus Marks and modify the décor if the franchisee fails to do so, ensuring it no longer resembles a Dog Haus restaurant. Upon any lease renewal, Dog Haus and the landlord will cooperate to align the expiration dates of the renewal lease and the Renewal Franchise Agreement. As an alternative to including these provisions in the lease, Dog Haus, the franchisee, and the landlord can execute Dog Haus's current form of an Option to Obtain Lease Assignment.
To protect the Dog Haus system and brand, the franchisee cannot open the franchised restaurant or offer Dog Haus authorized products to the public without Dog Haus's express written authorization. This authorization may depend on the franchisee's compliance with approved final plans, Dog Haus system standards, completion of the Initial Training Program by the Principal Owner and the General Manager, and compliance with staffing and other requirements. The franchisee must open the restaurant after receiving a certificate of occupancy and no more than 10 days after receiving Dog Haus's written authorization to open. After the opening date, Dog Haus and the franchisee will complete and execute an addendum to Exhibit A to designate the opening date.