If a Dog Haus franchisee is required to close by law, is that considered 'Abandon'?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
uctions contained in the notice. Franchisee shall have a minimum of thirty (30) days and not more than sixty (60) days after receipt of written notice in which to fully implement any menu change. Franchisee shall cease selling previously approved Dog Haus Authorized Products, or Sub-Branded Product s, if applicable, within thirty (30) days after receipt of notice that the product is no longer approved. All menus, containers, napkins, bags, cups and other packaging and like articles used at the Franchised Restaurant shall conform to Franchisor's specifications, shall be imprinted with the Dog Haus Marks, if and as specified by Franchisor, and shall be purchased by Franchisee from a Dog Haus Approved Supplier.
- 7.15 Compliance with Applicable Law. Franchisee shall operate the Franchised Restaurant as a clean, orderly, legal and respectable place of business in accordance with Franchisor's business standards and merchandising policies and shall comply with all Applicable Laws. Franchisee shall not cause or allow any part of the Franchised Restaurant or the Franchised Location to be used for any immoral or illegal purpose. Franchisee shall in all dealings with its customers, suppliers, and public officials adhere to high standards of honesty, integrity, fair dealing and ethical conduct and refrain from engaging in any action which will cause Franchisor to be in violation of any Applicable Law. If Franchisee shall receive any notice, report, fine, test results or the like from any applicable department of health (or other similar Governmental Authority), Franchisee shall promptly send a copy of the same to Franchisor.
- 7.16 Hours. Subject to Applicable Law, Dog Haus Fast Casual Restaurants shall be open and operational at least eleven (11) hours per day, seven (7) days per week or as otherwise prescribed by Franchisor and Dog Haus Biergarten Restaurants shall be open and operational at least thirteen (13) hours per day, seven (7) days per week or as otherwise prescribed by Franchisor. Franchisee shall continually operate the Franchised Restaurant throughout the Term. Franchisee shall diligently and efficiently exercise its best efforts to achieve the maximum Gross Sales possible from its Franchised Location, and shall remain open for longer hours if additional opening hours are reasonably required to maximize operations and sales.
- 7.17 Signs. Franchisee shall maintain approved signs and/or awnings at, on, or near the front of the Franchised Restaurant, identifying the Franchised Location as a Franchised Restaurant, which shall conform in all respects to Franchisor's specifications and requirements and the layout and design plan approved for the Franchised Location, subject only to restrictions imposed by Applicable Law.
- 7.18 Franchisee Employee Policies. Franchisee shall maintain a competent, conscientious, and trained staff and shall take all steps necessary to ensure that its employees preserve good customer relations, render competent, prompt, courteous, and knowledgeable service, and meet the minimum standards that Franchisor may establish from time to time in the Manuals or otherwise. All employees hired by or working for Franchisee shall be the employees of Franchisee, and Franchisee alone, and shall not, for any purpose, be deemed to be the
employees of Franchisor or subject to Franchisor's direct or indirect control, most particularly with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any Governmental Authority. Franchisee and Franchisor will each file their own tax, regulatory and payroll reports, and be responsible for all employee benefits and workers' compensation insurance payments with respect to their respective employees and operations. Franchisee acknowledges and agrees that Franchisor will not have the power to hire or fire Franchisee's employees.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
Based on the 2025 Dog Haus Franchise Disclosure Document, franchisees must operate their restaurants in compliance with all Applicable Laws. The FDD states that if there is a conflict between the franchisor's standards/policies and any Applicable Law, the franchisee must comply with the law, notify the franchisor in writing, and cooperate with the franchisor to find a way to meet the franchisor's standards within the bounds of the law. Furthermore, the franchise agreement specifies that nothing within it should be interpreted as requiring any action contrary to Applicable Law. If there is a conflict between the agreement and any present or future statute, law, ordinance, or regulation, the latter will prevail. The provisions of the agreement will be curtailed and limited only to the extent necessary to comply with the law.
Dog Haus requires franchisees to maintain specific operating hours, but these hours are subject to Applicable Law. Franchisees must also maintain approved signs identifying the location as a Dog Haus restaurant, but this is also subject to restrictions imposed by Applicable Law. The franchisee is expected to operate the restaurant continuously throughout the term of the agreement and to maximize gross sales, potentially requiring extended hours if needed.
The franchise agreement includes a 'Force Majeure' clause, excusing delays caused by events outside the franchisee's control, provided the franchisor is notified within ten days of such an event. However, the excerpts provided do not explicitly define 'Abandon' or detail the specific consequences of a legally mandated closure. A prospective franchisee should seek clarification from Dog Haus regarding how such a situation would be handled under the franchise agreement and whether it would be considered a breach or abandonment of the franchise.