During a Month-to-Month Agreement for a Dog Haus franchise, how much notice is required to terminate the agreement, and what happens to the franchisee's obligations?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor is not offering new Dog Haus franchises, is in the process of revising, amending or renewing Franchisor's form of Franchise Agreement or franchise disclosure document or is not lawfully able to offer Franchisor's Then-Current form of Franchise Agreement at the time of an Assignment, Franchisor may offer to amend this Agreement, upon terms and conditions that will be established by Franchisor and the Proposed Buyer at that time, or may offer to amend the Term on substantially the terms and conditions set forth in this Agreement on a month-to-month basis for as long as Franchisor deems necessary or appropriate so that Franchisor may subsequently offer and utilize a Then-Current form of Franchise Agreement.
- 14.4.5 Franchisee will remain subject to all obligations stated in this Agreement that expressly, or by implication due to their nature, survive the transfer, termination or expiration of this Agreement, including, without limitation, the provisions prohibiting competition, non-interference and non-disclosure of Dog Haus Confidential Information.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
Based on the 2025 Dog Haus Franchise Disclosure Document, if Dog Haus offers to amend the Term on a month-to-month basis, the document does not specify the amount of notice required to terminate the agreement by either party. However, the franchisee will remain subject to all obligations stated in the original agreement that expressly, or by implication due to their nature, survive the transfer, termination, or expiration of this agreement. This includes provisions prohibiting competition, non-interference, and non-disclosure of Dog Haus Confidential Information.
Even after termination or expiration of the agreement, certain obligations of the franchisee continue. These include ceasing all use of Dog Haus Trade Secrets, Dog Haus Confidential Information, the Dog Haus Marks, and any confusingly similar trademarks. The franchisee must also return all manuals and written materials incorporating Dog Haus Trade Secrets to the franchisor at their own cost. Additionally, the franchisee is responsible for making cosmetic changes to the restaurant so that it no longer resembles Dog Haus's proprietary designs and must remove all Dog Haus identifying materials.
Franchisee should note that the franchisor may retain all fees paid, and the franchisee must immediately pay any amounts due to the franchisor and its affiliates. If the agreement terminates due to a default by the franchisee, the amounts to be paid include all damages, costs, and expenses, including reasonable attorneys' fees incurred by the franchisor. This obligation remains a lien in favor of the franchisor against the assets of the franchised restaurant until paid in full. Upon termination or expiration, all obligations of the franchisor to the franchisee cease, and the franchisee must stop representing themselves as a current or former franchisee of Dog Haus.