If a Dog Haus franchisee desires to terminate the Remote Kitchen Agreement, what is Dog Haus free to do?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If the Remote Kitchen Agreement provides that the Remote Kitchen Agreement automatically renews for period of time unless either party provides the other party with thirty (30) days' prior written notice of its desire to terminate before the expiration date of the term then in effect, then in order to provide Franchisor with the opportunity to maintain the Remote Kitchen Agreement in full force and effect, Franchisee shall provide Franchisor with prior written notice of its desire to terminate the Remote Kitchen Agreement sixty (60) days before the expiration date of the term then in effect.
In that event, Franchisor shall be free to (i) occupy and conduct business from the Remote Kitchen Premises itself; or (ii) terminate the Remote Kitchen Agreement or permit it to lapse.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, if the Remote Kitchen Agreement provides that it automatically renews unless either party gives 30 days' prior written notice of termination, the franchisee must give Dog Haus 60 days' notice before the expiration date if they wish to terminate. This allows Dog Haus to decide whether to maintain the agreement.
In this situation, Dog Haus is free to either occupy and conduct business from the Remote Kitchen Premises itself, or terminate the Remote Kitchen Agreement or permit it to lapse. This clause ensures that Dog Haus has the opportunity to continue operations at the Remote Kitchen location, either directly or by allowing the agreement to expire.
This is a significant consideration for a potential Dog Haus franchisee, as it gives Dog Haus considerable control over the future of the Remote Kitchen location. The franchisee needs to be aware that their decision to terminate the Remote Kitchen Agreement could result in Dog Haus taking over the location or allowing the agreement to lapse, potentially impacting the franchisee's business plans and investments.