What minimum ownership interest must the Principal Owner have in the Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate a Principal Owner acceptable to us who will be responsible for the operational decisions of your Franchised Restaurant. Your Principal Owner must devote his or her full time to the Franchised Restaurant and must own at least 10% interest in your equity and voting rights (unless you are a publicly held entity or a wholly-owned subsidiary of a publicly-held entity) when you sign your Franchise Agreement. Under certain circumstances we may waive the requirement that your Principal Owner must have a 10% interest in your equity and voting rights. You must also designate a General Manager who will be the individual responsible for your Franchised Business in the absence of the Principal Owner. Your General Manager does not have to own an equity interest in you or the franchise. Your Franchised Restaurant must, at all times, be directly supervised by the Principal Owner. Your Principal Owner, if applicable, must, unless otherwise agreed in writing (i) devote 100% of his or her time and best efforts solely to the operation of your Dog Haus Restaurant; (ii) meet our educational, experience, financial and other reasonable criteria for the position, as contained in the Manuals or otherwise in writing; (iii) be an owner with 10% or more (direct or indirect) of your equity and voting rights, and (iv) be approved by us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 61–62)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Principal Owner of a Dog Haus franchise must own at least a 10% interest in the equity and voting rights of the franchise. This requirement is in place when the franchisee signs the Franchise Agreement. However, there is an exception: this ownership requirement may be waived by Dog Haus under certain circumstances. This exception does not apply if the franchisee is a publicly held entity or a wholly-owned subsidiary of a publicly-held entity.
The Principal Owner is responsible for the operational decisions of the Dog Haus restaurant and must devote their full time to the business. In the absence of the Principal Owner, a General Manager is designated to oversee the franchise, but the General Manager is not required to have any equity interest in the franchise.
This 10% ownership requirement ensures that the Principal Owner has a vested interest in the success of the Dog Haus franchise and is motivated to manage the business effectively. The Principal Owner must also meet Dog Haus's criteria for the position, including educational, experience, and financial qualifications, as outlined in the manuals or in writing. This requirement helps Dog Haus maintain consistent standards across all franchise locations.