What happens to Dog Haus' obligations to the franchisee upon termination or expiration of the agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.3 Termination of Obligations and Rights.
Upon the termination or expiration of this Agreement, any and all obligations of Franchisor to Franchisee under this Agreement shall immediately cease and terminate.
Likewise, any and all rights of Franchisee under this Agreement shall immediately cease and terminate and Franchisee shall immediately cease and thereafter refrain from representing itself as a then or former Franchisee or other Affiliate of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, any and all obligations of Dog Haus to the franchisee under the agreement immediately cease and terminate. Similarly, all rights of the franchisee also cease, and the franchisee must stop representing themselves as a current or former franchisee of Dog Haus.
Dog Haus retains the right to collect any outstanding payments owed by the franchisee, including damages, costs, and expenses, especially if the termination resulted from the franchisee's default. These amounts remain a lien against the assets of the franchised restaurant until fully paid. The franchisee's obligations to take or abstain from taking certain actions as outlined in the agreement remain in effect, and provisions of the agreement that constitute post-termination covenants survive the termination or expiration.
After termination or expiration, the franchisee must immediately stop using Dog Haus's trade secrets, confidential information, and trademarks. The franchisee is responsible for making cosmetic changes to the restaurant to remove any resemblance to Dog Haus's proprietary designs, including removing identifying materials, distinctive cosmetic features, furniture, and signage. The franchisee must also return all manuals and written materials incorporating Dog Haus's trade secrets to Dog Haus at the franchisee's own cost.
These stipulations are fairly standard in franchising, as they protect the brand's intellectual property and ensure a consistent brand image, even after a franchise ceases operation. Prospective franchisees should carefully consider these post-termination obligations, as they can involve significant costs and restrictions.