What information must Dog Haus include in the 'Take-Along Notice' to the Area Developer?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall exercise this Take-Along Right to compel the sale of the Take-Along Assets by Area Developer by providing Area Developer with written notice (the "Take-Along Notice") setting forth the time and place of the closing of the Capital Event, which time and place shall not be less than thirty (30) days after the date of the Take-Along Notice, and the expected price and form of consideration to be paid for the Take-Along Assets at the closing.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Take-Along Notice must include the time and place of the Capital Event closing, which must be at least 30 days after the date of the Take-Along Notice. Additionally, the notice must state the expected price and form of consideration to be paid for the Take-Along Assets at the closing.
This means that if Dog Haus experiences a Capital Event, they have the right to force the Area Developer to sell the assets of any or all Dog Haus Restaurants within their territory. The Take-Along Notice serves as the formal communication of this decision.
For a prospective Area Developer, this clause highlights a potential risk. Dog Haus can compel the sale of restaurants at a value they determine during a Capital Event. The Area Developer needs to be aware that the final decision on the sale of assets and the attributable value lies with Dog Haus in such circumstances.