Can Dog Haus operate other businesses under different marks near a Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We expressly reserve the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly to: (i) develop, own and operate, and to grant franchises to third parties to develop, own and operate, Franchised Restaurants outside of your Protected Area, regardless of their proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant franchises to third parties to develop, own and operate any other business, other than a competitive business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location regardless of their proximity to your Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, or license others to sell or distribute, Dog Haus Branded Products at any location within or outside your Protected Area regardless of its proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail marketing, catering and through other distribution methods; (iv) market on the Internet and use the Dog Haus Marks on the Internet, including all use of Websites, domain names, URLs, directory addresses, email addresses, metatags, linking, marketing, co-branding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or to license to other Franchised Restaurants or third parties to deliver and cater at any location within or outside of your Protected Area without compensation to you, and to establish a delivery and catering policy in the future which may restrict the delivery and catering jurisdiction of any Dog Haus franchisee; and (vi) own or operate and to franchise or license others to own or operate Franchised Restaurants at any Non-Traditional Venue within and outside your Protected Area regardless of their proximity to your Franchised Restaurant.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus retains the right to develop, own, and operate other businesses, as well as grant franchises to third parties for businesses that are not competitive to Dog Haus. These businesses must operate under different marks and systems than the Dog Haus brand. This right extends to any location, regardless of its proximity to a franchisee's Dog Haus restaurant.
This means that a Dog Haus franchisee could potentially have a business operating nearby that is owned or franchised by Dog Haus, as long as it is not a competitive business and operates under a different brand. This clause protects Dog Haus's ability to diversify and explore other business ventures without being restricted by the territories granted to franchisees. However, it also introduces a risk for franchisees, as Dog Haus could operate other food-related businesses nearby, potentially drawing customers away, even if they are technically not direct competitors.
It is important for prospective franchisees to understand that Dog Haus's reservation of rights in this area is broad and unrestricted. While the other business cannot be a "competitive business", the definition of "competitive" is not provided in this section. A prospective franchisee should seek clarification from Dog Haus on what constitutes a "competitive business" to fully understand the potential impact on their franchise.