What are the potential consequences if Dog Haus' right to use unregistered trademarks is challenged?

According to Dog Haus's 2025 Franchise Disclosure Document, because Dog Haus does not have a federal trademark registration for the mark with serial number 97,116,962, nor does it have a federal trademark registration for any of the marks listed in the table, these marks do not have as many legal benefits and rights as a federally registered trademark. If Dog Haus's right to use these trademarks is challenged, franchisees may have to change to alternative trademarks.

This could increase a franchisee's expenses, as they would need to update signage, marketing materials, and other branded items to reflect the new trademarks. While Dog Haus claims common law rights to the trade and service marks they license, these rights may not provide the same level of protection as federal registration. This means that if another business were to use a similar mark in a different geographic area, Dog Haus's ability to prevent that use might be limited.

It is important to note that Dog Haus may add to, delete, or modify any or all of the Dog Haus Marks. Franchisees must modify or discontinue the use of the Dog Haus Marks, at their expense, if Dog Haus modifies or discontinues it. Dog Haus will not compensate franchisees if they modify or discontinue the Dog Haus Marks. This highlights the importance of franchisees staying informed about any changes to the brand's trademarks and being prepared to adapt their business accordingly, bearing the associated costs themselves.