How long after the Effective Date does a Dog Haus franchisee have to obtain a fully executed lease?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor consents to a relocation of the Franchised Restaurant during the Term, Franchisee shall have twelve (12) months from the date of Franchisor's approval of the new Franchised Location to secure the new Franchised Location and to Open and operate the Franchised Restaurant at the new Franchised Location.
If Franchisee fails to secure the new Franchised Location within twelve (12) months of the date of Franchisor's approval of the new Franchised Location, Franchisor shall have the right to estimate and bill Franchisee for Royalty Fees for the time period following the expiration of the twelve (12) month period based upon the Royalty Fees received for the Franchised Restaurant during the identical periods of the last preceding
calendar year plus an additional ten percent (10%) of such amount or, if the Franchised Restaurant was not in operation during the identical period of the last preceding year, based upon the average Royalty Fees paid during the number of months the Franchised Restaurant was in operation plus an additional ten percent (10%) of that amount.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee seeking to relocate their franchise has twelve months from the date Dog Haus approves the new location to secure it and open for business. If the franchisee fails to secure the new location within this 12-month timeframe, Dog Haus has the right to estimate and bill the franchisee for Royalty Fees. These fees will be calculated based on the Royalty Fees received for the Franchised Restaurant during the identical periods of the last preceding calendar year, plus an additional ten percent. If the restaurant wasn't in operation during that period, the fees will be based on the average Royalty Fees paid during the months it was in operation, plus an additional ten percent.
This policy incentivizes franchisees to act quickly in securing a new location once approved by Dog Haus. The potential for estimated Royalty Fees adds financial pressure to meet the 12-month deadline. This also protects Dog Haus by ensuring that the franchise remains operational and generating revenue, even if the relocation process faces delays.
Prospective franchisees should be aware of this timeline and the associated financial implications. It's crucial to have a clear plan for site selection and lease negotiation to avoid incurring additional fees. Franchisees should also communicate proactively with Dog Haus throughout the relocation process to address any potential challenges and ensure compliance with the franchise agreement. This requirement only applies to relocation and not the initial establishment of the Dog Haus location.