What is the impact of a Force Majeure event on the Dog Haus Development Schedule?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Failure to comply with the Development Schedule shall constitute a Default under this Agreement and shall entitle Franchisor to terminate this Agreement, unless the Default results from an event of Force Majeure, in which case, the deadline to Opening a Dog Haus Restaurant may be extended by Franchisor as provided in Section 2.7.
- 2.7 Force Majeure.
Neither Party will be in default in the performance of its obligations under this Agreement if such performance is prevented or delayed due to Force Majeure.
If Area Developer is unable to meet the Minimum Development Obligation for any Development Period solely as the result of Force Majeure or any legal disability of Franchisor to deliver a Disclosure Document pursuant to Section 5.4, which results in the inability of Area Developer to construct and Open the Dog Haus Restaurants as required by this Agreement, Area Developer shall provide Franchisor, within ten (10) days after the occurrence of an event that Area Developer believes is an event of Force Majeure, with notice of the specific nature and extent of the Force Majeure and an explanation as to how the event has delayed Area Developer's performance under this Agreement.
The determination of whether an event of Force Majeure has occurred shall be made by Franchisor upon Franchisor's assessment of the event causing the delay.
If Franchisor determines that the Default is the result of an event of Force Majeure, the required date for performance by Area Developer shall be extended by the number of days equal to the number of days that the Force Majeure exists.
Area Developer shall provide Franchisor with continuing updates and all information requested by Franchisor regarding Area Developer's progress and diligence in responding to and overcoming the event of Force Majeure.
- "Force Majeure" means any event (i) that was reasonably unforeseeable as of the Effective Date; (ii) that is beyond the reasonable control, directly or indirectly, of a Party; (iii) that could not reasonably have been prevented or avoided by that Party with the exercise of reasonable efforts and due diligence; (iv) that does not result from the fault or negligence of that Party or its agents, employees or contractors; and (v) that causes the Party to be delayed, in whole or in part, or unable to partially or wholly perform its obligations under this Agreement.
Subject to the satisfaction
of the foregoing criteria, Force Majeure shall include: (a) acts of God (such as tornadoes, earthquakes, hurricanes, floods, fire or other natural catastrophes); (b) strikes, lockouts or other industrial disturbances; (c) war, terrorist acts, riot, or other civil disturbance; (d) unilateral governmental action impacting restaurants generally; and (e) contagious diseases, epidemics, pandemics, transportation shortages, inadequate supply of labor, material or energy. An event of Force Majeure will not affect or change Area Developer's obligation to pay Initial Franchise Fees, Development Fees or any other fees owed to Franchisor when due.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a Force Majeure event can impact the Area Developer's adherence to the Development Schedule. Specifically, if the Area Developer's failure to comply with the Development Schedule results from a Force Majeure event, this will not automatically entitle Dog Haus to terminate the agreement. Instead, the deadline for opening a Dog Haus Restaurant may be extended by Dog Haus.
To qualify for this extension, the Area Developer must notify Dog Haus within ten days of the Force Majeure event, detailing the nature and extent of the event and explaining how it has delayed their performance. Dog Haus then assesses the event to determine if it qualifies as Force Majeure. If Dog Haus determines that the Area Developer's default is indeed due to a Force Majeure event, the required performance date is extended by a number of days equal to the duration of the Force Majeure event.
It's important to note that Dog Haus ultimately decides whether an event qualifies as Force Majeure. The FDD defines Force Majeure as an unforeseeable event beyond a party's control that could not have been prevented with reasonable effort, and which causes a delay or inability to perform obligations. Examples include acts of God, strikes, war, governmental actions, and pandemics. However, a Force Majeure event does not relieve the Area Developer of the obligation to pay fees owed to Dog Haus when due.