Is Dog Haus liable for debts incurred during the interim management period?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
hts of termination under this Agreement or shall require longer notice periods than those set forth above, this Agreement shall be deemed amended to conform to the minimum notice periods
or restrictions upon termination required by that Applicable Law. Franchisor shall not, however, be precluded from contesting the validity, enforceability or application of Applicable Laws in any action, hearing or dispute relating to this Agreement or the termination of this Agreement.
- 16.7 Interim Management. To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, after Franchisor has given Franchisee written notice that Franchisee is in Default, Franchisor may (but is not obligated to) assume interim management of the Franchised Restaurant during the pendency of any cure period or in lieu of immediately terminating this Agreement. If Franchisor elects to assume interim management of the Franchi
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus will not be liable for any debts, losses, costs, or expenses incurred during the interim management period of a franchised restaurant. This means that if Dog Haus takes over the management of a restaurant due to the franchisee's default, the franchisee remains responsible for all financial obligations.
Dog Haus may elect to assume interim management to protect the Dog Haus system, marks, trade secrets, and associated goodwill. However, this action does not relieve the franchisee of their obligations under the franchise agreement. The franchisee is also responsible for paying Dog Haus an Interim Management Fee, which is currently $500 per day, plus any out-of-pocket costs Dog Haus incurs for the management services.
Furthermore, the franchisee must indemnify and hold Dog Haus harmless against any claims, demands, judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses (including attorney's fees) related to the interim management. The only exception to this is if these issues arise solely from the gross negligence or willful misconduct of Dog Haus. This arrangement places the financial risk and responsibility squarely on the franchisee even during periods when Dog Haus is managing the restaurant.