Can Dog Haus license other franchisees to deliver and cater within a franchisee's Protected Area?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We expressly reserve the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly to: (i) develop, own and operate, and to grant franchises to third parties to develop, own and operate, Franchised Restaurants outside of your Protected Area, regardless of their proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant franchises to third parties to develop, own and operate any other business, other than a competitive business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location regardless of their proximity to your Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, or license others to sell or distribute, Dog Haus Branded Products at any location within or outside your Protected Area regardless of its proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail marketing, catering and through other distribution methods; (iv) market on the Internet and use the Dog Haus Marks on the Internet, including all use of Websites, domain names, URLs, directory addresses, email addresses, metatags, linking, marketing, co-branding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or to license to other Franchised Restaurants or third parties to deliver and cater at any location within or outside of your Protected Area without compensation to you, and to establish a delivery and catering policy in the future which may restrict the delivery and catering jurisdiction of any Dog Haus franchisee; and (vi) own or operate and to franchise or license others to own or operate Franchised Restaurants at any Non-Traditional Venue within and outside your Protected Area regardless of their proximity to your Franchised Restaurant.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus retains the right to license other franchisees or third parties to deliver and cater both within and outside of a franchisee's protected area. This is done without providing any compensation to the franchisee whose protected area is affected. Dog Haus also has the ability to establish a delivery and catering policy that may restrict a Dog Haus franchisee's delivery and catering jurisdiction.
This policy has significant implications for prospective Dog Haus franchisees. While a franchisee is granted a protected area, Dog Haus maintains control over delivery and catering services within that area. This means that other franchisees or third-party services licensed by Dog Haus can operate within the franchisee's protected area, potentially impacting their sales and customer base. The franchisee will not receive any compensation for this external competition within their protected territory.
Furthermore, Dog Haus reserves the right to modify delivery and catering policies in the future, which could further restrict a franchisee's ability to provide these services, even within their own protected area. This lack of control over delivery and catering services, combined with the absence of compensation for competition within the protected area, represents a potential risk for franchisees. It is important to consider the potential impact of these policies on the profitability and operational control of a Dog Haus franchise.