In Indiana, can Dog Haus establish a company-owned outlet in a Dog Haus franchisee's exclusive territory?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as expressly provided in Section 2.2, Franchisor expressly reserves all other rights, including the exclusive, unrestricted right, in its discretion, directly and indirectly, through its
employees, Affiliates, representatives, licensees, assigns, agents and others, to (i) develop, own and operate, and to grant franchises to third parties to develop, open and operate, Dog Haus Restaurants outside the Development Area, regardless of their proximity to the Development Area; (ii) develop, open and operate, and to grant franchises to third parties to develop, open and operate any other business, including a beverage and snack or food business, other than a Competitive Business, under marks and systems different from the Dog Haus Marks and the Dog Haus System within and outside the Development Area; (iii) sell or distribute, at retail or wholesale, directly or indirectly, or license others to sell or distribute, Dog Haus Branded Products and Dog Haus Proprietary Products within and outside the Development Area, through the Internet, mail order catalogs, direct mail advertising, catering and through other distribution methods; (iv) deliver and cater and/or to license to other Dog Haus Restaurants or third parties to deliver and cater at any location within or outside of the Development Area without compensation to Area Developer, and to establish a delivery and Catering Services policy in the future which may restrict the delivery and Catering Services jurisdiction of Franchisor or of any Dog Haus Area Developers; (v) market on the Internet and use the Dog Haus Marks on the Internet, including all use of web sites, domain names, URLs, directory addresses, email addresses, metatags, linking, advertising, co-branding and other arrangements, and in all other forms of electronic media; (vi) open or operate and to franchise or license others to open or operate Dog Haus Restaurants at any Non-Traditional Venue within and outside of the Development Area regardless of their proximity to any Dog Haus Restaurants developed or under development by Area Developer; (vii) acquire the assets or ownership interests of one or more businesses providing products and services similar to those provided at Dog Haus Restaurants and to franchise, license or create similar arrangements with respect to these businesses once acquired, wherever these businesses (or the franchisees or licensees of these businesses) are located or operating; (viii) be acquired (whether through acquisition of assets, ownership interests or otherwise, regardless of the form of transaction), by any business providing products and services similar to those provided at Dog Haus Restaurants, or by another business, even if such business operates, franchises and/or licenses Competitive Businesses; and (ix) engage in all other activities that this Agreement does not expressly prohibit.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus retains specific rights regarding development and operation, even within a franchisee's Development Area. The franchisor reserves the right to operate or franchise Dog Haus restaurants at Non-Traditional Venues both inside and outside the Development Area. They can also sell Dog Haus products through various channels like the internet, catering, and other distribution methods, without compensating the Area Developer.
Dog Haus maintains the right to develop, own, and operate Dog Haus Restaurants outside the Development Area, regardless of proximity. They can also develop other businesses (excluding Competitive Businesses) under different marks and systems within or outside the Development Area. This broad reservation of rights allows Dog Haus to pursue various business opportunities without being restricted by the Development Area boundaries granted to franchisees.
For a prospective Dog Haus franchisee, this means that while you may be granted an exclusive territory, Dog Haus retains considerable freedom to operate and expand its brand through alternative channels and venues, potentially within or near your territory. It is important to understand the scope of these reserved rights and how they might impact your business. A franchisee should seek clarification from Dog Haus regarding their specific plans for non-traditional venues, alternative distribution methods, and other business ventures that could operate within or near their Development Area.