factual

Can Dog Haus own or operate Franchised Restaurants at Non-Traditional Venues within and outside of the Development Area?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

ce customers in geographic areas immediately adjacent to your Protected Area who are not located within the protected area of another Dog Haus Restaurant. We may revoke this grant for any reason or no reason upon 30 days' prior written notice to you. You must advise all Food Delivery Services of these delivery restrictions imposed on you.

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. We are not required to pay you any compensation if we exercise any of the rights specified above. "Non-Traditional Venues" mean a broad variety of atypical sites, including a site or location within a captive market site, another primary business or in conjunction with other businesses or at institutional settings including office buildings and business complexes, arenas, stadiums and entertainment venues, health clubs and recreational facilities, beaches, parks, prisons, airports, train and bus stations, travel plazas, toll road facilities and other transportation terminals and related facilities, educational, medical, governmental and other types of institutional facilities, restaurant-in retail locations or restaurant-in-store (for example, a cafe within a grocery store), trucks, cafeterias, casinos, food delivery fulfillment centers, food courts operated by a master concessionaire and any site for which the lessor, owner or operator limits the operation of its beverages and/or food service facilities to a master concessionaire or contract food service provider.

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 unrestricted right to own, operate, and franchise restaurants at Non-Traditional Venues both within and outside a franchisee's Development Area. This means that even if a franchisee has an Area Development Agreement, Dog Haus can still establish franchises in locations such as airports, stadiums, universities, or food courts, regardless of their proximity to the franchisee's location. This right is reserved exclusively to Dog Haus, and they are not required to provide any compensation to the franchisee if they choose to exercise it.

For a prospective Dog Haus franchisee, this clause has significant implications. While an Area Development Agreement grants the right to develop a certain number of restaurants in a defined area, it does not protect against Dog Haus opening franchises in Non-Traditional Venues within that same area. This could lead to increased competition and potentially impact the franchisee's revenue. It is important to note that Non-Traditional Venues include a broad variety of atypical sites, including captive market sites, locations within another primary business, institutional settings, arenas, stadiums, entertainment venues, health clubs, recreational facilities, beaches, parks, prisons, airports, train and bus stations, travel plazas, toll road facilities, educational, medical, governmental and other types of institutional facilities, restaurant-in retail locations or restaurant-in-store, trucks, cafeterias, casinos, food delivery fulfillment centers, and food courts operated by a master concessionaire.

Furthermore, the Franchise Agreement may be amended for certain types of Non-Traditional Venues, suggesting that the terms and conditions for operating in these locations may differ from standard franchises. This could involve variations in operational requirements, marketing strategies, or fee structures. Therefore, prospective franchisees should carefully consider the potential impact of Dog Haus's right to establish franchises in Non-Traditional Venues and inquire about any specific terms or conditions that may apply to such locations. Understanding these factors is crucial for making an informed decision about investing in a Dog Haus franchise and assessing the potential risks and opportunities associated with the brand.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.