On what page of the Dog Haus franchise agreement are the terms for default and termination outlined?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 22: CONTRACTS]
- 15.11 Survival.
The provisions of this Article 15 shall survive the expiration and termination of this Agreement and shall not limit, restrain or otherwise affect any right or cause of action which may accrue to Franchisor for any infringement of, violation of, or interference with, this Agreement, or the Dog Haus Marks, the Dog Haus System, the Dog Haus Confidential Information, the Dog Haus Trade Secrets, or any other proprietary aspects of Franchisor's business.
16. DEFAULT AND TERMINATION.
16.1 Termination In the Event of Franchisee's Bankruptcy or Insolvency. Franchisee shall be deemed to be in Default under this Agreement, and all rights granted to Franchisee of this Agreement shall automatically terminate without notice to Franchisee, (i) if Franchisee or its Principal Owner becomes insolvent or make a general assignment for the benefit of creditors; (ii) if a petition in bankruptcy is filed under any foreign, state or United States Bankruptcy Act by Franchisee or its Principal Owner or if a petition is filed against and not opposed by Franchisee or its Principal Owner; (iii) if Franchisee or its Principal Owner is adjudicated as bankrupt or insolvent; (iv) if a bill in equity or other proceeding for the appointment of a receiver of Franchisee or its Principal Owner or other custodian for the Franchised Restaurant is filed and consented to by Franchisee or its Principal Owner; (v) if a receiver or other custodian (permanent or temporary) of Franchisee's assets or property, or any part thereof, is appointed by any court of competent jurisdiction; (vi) if proceedings for a composition with creditors under any Applicable Law is instituted by or against Franchisee or its Principal Owner; (vii) if a final judgment in excess of $100,000 against the Franchised Restaurant remains unsatisfied or of record for thirty (30) days or longer (unless a supersedeas bond is filed); (viii) if Franchisee or its Principal Owner admits Franchisee
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the terms for default and termination are outlined on page 137 of the franchise agreement. Specifically, Article 16 of the agreement discusses default and termination conditions. This section is crucial for prospective franchisees to understand, as it details the circumstances under which the franchise agreement can be terminated, leading to a loss of the franchise.
Several events can trigger a default, including insolvency, bankruptcy, failure to meet obligations, or using abusive language towards Dog Haus staff or customers. A significant judgment against the franchised restaurant exceeding $100,000 that remains unpaid for 30 days also constitutes a default. Understanding these conditions is vital, as a default can lead to the termination of the franchise agreement and potential financial losses.
Dog Haus also has the option to assume interim management of the franchised restaurant if the franchisee is in default, as stated in Section 16.7. During this period, Dog Haus may charge an Interim Management Fee of $500 per day, in addition to covering out-of-pocket costs for management services. The franchisee remains responsible for obligations under the agreement and must indemnify Dog Haus against claims, except those arising from gross negligence or willful misconduct by Dog Haus. This interim management provision highlights the control Dog Haus can exert over a struggling franchise to protect the brand and system.