If a Dog Haus franchisee is in default, must they describe the nature of the default in the written statement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Notice of Default" means a written notice from one Party to another Party demanding the cure of a Default and demanding that the defaulting Party provide evidence of the cure to the other Party.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, when a franchisee receives a Notice of Default, they are required to provide evidence of the cure to the other party. The Notice of Default is defined as a written notice from one party to another demanding the cure of a Default. The notice also demands that the defaulting party provide evidence of the cure to the other party.
This means that if Dog Haus sends a franchisee a Notice of Default, the franchisee must respond with evidence that they have corrected the issue that led to the default. The FDD does not specify that the franchisee must describe the nature of the default in their written statement, only that they must provide evidence of the cure.
It is important for prospective franchisees to understand the default and cure process, as failure to cure a default can lead to termination of the franchise agreement. Franchisees should carefully review the franchise agreement and consult with an attorney to fully understand their rights and obligations in the event of a default.