If a Dog Haus franchisee is an Entity, what business activities are they restricted to?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 Non-Competition During Term of Agreement.
Franchisee and each Owner covenants that during the Term, except as otherwise approved in writing by Franchisor, Franchisee and each Owner shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, or legal Entity: (i) divert or attempt to divert any present or prospective Dog Haus customer to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business, provided, however, the restrictions stated in this Section 15.2 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Franchisee.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, during the term of the franchise agreement, a franchisee, including each owner, is restricted from certain business activities unless approved in writing by Dog Haus. Specifically, the franchisee cannot divert or attempt to divert any present or prospective Dog Haus customer to any Competitive Business, whether through direct or indirect inducement. They are also prohibited from performing any act that could be injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System.
Furthermore, the franchisee and each owner are restricted from owning, engaging in, or rendering services to any Competitive Business, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative, or agent. This restriction applies to both beneficial and recorded ownership. A "Competitive Business" is not defined in the provided excerpts.
However, these restrictions do not apply to any owner after two years from the date they cease to be associated with the franchisee as an officer, director, shareholder, member, manager, trustee, owner, general partner, employee, or in any other capacity. This post-term restriction has a defined time limit, allowing former owners to engage in other business activities after a specified period.