What happens if a Dog Haus franchisee does not elect to renew the Initial Term?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee does not elect to renew the Initial Term under Section 3.2, this Agreement shall expire on the Expiration Date.
- 3.2 Renewal Right.
Upon the expiration of the Initial Term, Franchisee shall have the right (the "Renewal Right") to enter into a new franchise agreement in the Then-Current form then generally being offered to prospective Dog Haus Franchisees (a "Renewal Franchise Agreement") for successive Renewal Terms.
If Franchisee desires to exercise the Renewal Right for a Renewal Term, Franchisee shall, no later than twelve (12) months prior to the Expiration Date or Renewal Term Expiration Date, as the case may be, notify Franchisor in writing (the "Renewal Notice") that Franchisee desires to extend the Initial Term or Renewal Term for the duration of the Renewal Term or the next successive Renewal Term.
If Franchisee exercises a Renewal Right, this Agreement shall terminate on the next Renewal Term Expiration Date.
This Agreement is not otherwise renewable.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, if a franchisee chooses not to renew the Initial Term, the Franchise Agreement will expire on the Expiration Date. This means that after the initial term concludes, the franchisee's rights and obligations under the agreement cease unless they actively pursue and qualify for a renewal. It is important for prospective franchisees to understand the implications of not renewing, as it would mean relinquishing the right to operate the Dog Haus franchise.
Dog Haus offers franchisees a Renewal Right, allowing them to enter into a new franchise agreement for successive Renewal Terms. To exercise this right, the franchisee must provide written notice to Dog Haus no later than twelve months before the Expiration Date. This notification indicates their desire to extend the Initial Term or Renewal Term.
However, if the franchisee does exercise their Renewal Right, the initial agreement terminates on the subsequent Renewal Term Expiration Date. This implies that the franchisee will operate under a new agreement with terms that may differ from the original. The document specifies that the agreement is not otherwise renewable, emphasizing the importance of adhering to the outlined renewal process to continue operating the Dog Haus franchise beyond the initial term.