What is the Minimum Development Obligation for Dog Haus?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
"Minimum Development Obligation" means the Area Developer's right and obligation to construct, equip, Open and thereafter continue to operate at sites within the Development Area the cumulative number of Dog Haus Restaurants set forth in Exhibit A within each Development Period.
Adherence to Development Schedule.
Area Developer shall satisfy the Minimum Development Obligation by Opening the number of Dog Haus Restaurants in the Development Area within each Development Period as required by the Development Schedule set forth on Exhibit A and by continuing to operate the cumulative number of Dog Haus Restaurants required by the Minimum Development Obligation.
Failure to comply with the Development Schedule shall constitute a Default under this Agreement and shall entitle Franchisor to terminate this Agreement, unless the Default results from an event of Force Majeure, in which case, the deadline to Opening a Dog Haus Restaurant may be extended by Franchisor as provided in Section 2.7.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, the Minimum Development Obligation refers to the Area Developer's commitment to construct, equip, open, and continuously operate a specific number of Dog Haus restaurants within the designated Development Area. This obligation must be fulfilled within each Development Period, as detailed in Exhibit A of the agreement.
The Development Schedule, also outlined in Exhibit A, specifies the number of Dog Haus restaurants that the Area Developer must open within each Development Period to meet the Minimum Development Obligation. Failure to adhere to this schedule constitutes a default under the agreement, potentially leading to termination, unless the failure is due to an event of Force Majeure. In such cases, Dog Haus may grant an extension for opening the restaurant.
To maintain exclusive rights within the Development Area, the Area Developer must remain in Good Standing and adhere to the Development Schedule. This ensures that Dog Haus restaurants are developed and operated according to the agreed-upon plan, protecting the brand's integrity and market presence. The specific number of restaurants and the time frame for development are detailed in Exhibit A, which is a critical component of the Area Development Agreement.