What happens if a Dog Haus developer commits a material breach of any Franchise Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to meet any of your obligations under the Area Development Agreement, including the development obligations, or commit a material breach of any Franchise Agreement signed by you under the Area Development Agreement, or a material breach of any other agreement between you and us, we may terminate your right to develop, open and operate new Franchised Restaurants in the Development Area. The termination of your right to develop Franchised Restaurants in your Development Area, however, will not terminate any rights granted under your Franchise Agreements then in effect between you and us, absent a breach of your Franchise Agreement itself. After the expiration of the term of your Area Development Agreement, we may own, operate, franchise or license others to operate additional Franchised Restaurants anywhere, without restriction, including in your Development Area, subject only to the territorial rights reserved to you in the individual Franchise Agreements.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, if a developer fails to meet obligations under the Area Development Agreement, including development obligations, or commits a material breach of any Franchise Agreement signed under the Area Development Agreement, or a material breach of any other agreement between them and Dog Haus, the company may terminate the developer's right to develop, open, and operate new franchised restaurants in the Development Area.
However, the termination of the right to develop franchised restaurants in the Development Area will not terminate any rights granted under the Franchise Agreements then in effect between the developer and Dog Haus, unless there is a breach of the Franchise Agreement itself.
After the expiration of the term of the Area Development Agreement, Dog Haus has the option to own, operate, franchise, or license others to operate additional franchised restaurants anywhere, without restriction. This includes the developer's Development Area, subject only to the territorial rights reserved to the developer in the individual Franchise Agreements.