What obligations stated in the Dog Haus Franchise Agreement survive the transfer of the franchise?

According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee remains obligated to certain terms of the Franchise Agreement even after transferring the franchise to a new buyer. These surviving obligations include provisions related to non-competition, non-interference, and maintaining the confidentiality of Dog Haus's confidential information. This means that even after a franchisee sells their Dog Haus location, they cannot engage in activities that compete with the Dog Haus system, interfere with its operations, or disclose any of its trade secrets or confidential information.

This is a fairly standard practice in franchising, designed to protect the brand and its proprietary information. The non-compete clause typically restricts the former franchisee from opening a similar business within a certain geographic area for a specified period. The non-interference clause prevents the former franchisee from actively soliciting employees or customers of the Dog Haus system. The non-disclosure clause ensures that sensitive information about the Dog Haus business model, recipes, and operational procedures remains protected.

For a prospective Dog Haus franchisee, this means that selling the franchise does not completely absolve them of all responsibilities. They need to be aware of these ongoing obligations and ensure they comply with them to avoid potential legal issues with Dog Haus after the transfer. It is important to carefully review the specific terms of the Franchise Agreement related to non-competition, non-interference, and non-disclosure to fully understand the scope of these surviving obligations.