Which provisions of the Dog Haus franchise agreement survive the expiration, termination, or non-renewal of the agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Options At Termination. Upon any Default under Sections 11.2 or 11.3, Franchisor may immediately take 11.4 any one or more of the following actions, by written notice to Area Developer: (i) terminate this Agreement and all rights granted to Area Developer under this Agreement; (ii) accelerate or decelerate the Development Schedule; (iii) reduce the Minimum Development Obligation; (iv) eliminate or diminish Area Developer's rights with respect to the Development Area or the size of the Development Area; or (v) increase the fees to be paid by Area Developer to Franchisor
- 11.5 Cross-Default. Any Default by Area Developer under the terms and conditions of this Agreement, any Franchise Agreement, or any other agreement between Franchisor, or its Affiliates, and Area Developer, shall be deemed to be a Default of each and every other such agreement. In the event of the termination of this Agreement for any cause, or the termination of any other agreement between Franchisor, or its Affiliates, and Area Developer, Franchisor may, at its option, terminate any or all of such other agreements.
12. OBLIGATIONS UPON TERMINATION OR EXPIRATION
Upon termination or expiration of this Agreement, all rights granted under this Agreement to Area Developer shall forthwith terminate, and the following provisions shall apply:
- 12.1 No Right to Open Additional Restaurants. To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, upon termination or expiration of this Agreement: (i) Area Developer shall have no further right to develop any Dog Haus Restaurants; (ii) Area Developer shall have no further rights or obligations under this Agreement or the Dog Haus Franchise Agreements that were terminated; (iii) Area Developer shall have the right to continue to own and operate all Dog Haus Restaurants Opened by Area Developer prior to the termination date under Franchise Agreements with Franchisor that remain in full force and effect on the termination date; and (iv) Franchisor may thereafter develop, open and operate, and grant franchises to third parties to develop, open and operate Dog Haus Restaurants at any location within or outside of the Development Area, without restriction.
- 12.2 Payment of Monies Due. Upon expiration or termination of this Agreement, Area Developer shall promptly pay all sums owing to Franchisor and its Affiliates. If this Agreement is terminated because of a Default by Area Developer, such sums also shall include all damages, costs, and expenses, including attorneys' fees, incurred by Franchisor as a result of the Default. Franchisor shall have the right to set off any amounts which Franchisor deems are payable to Franchisor by Area Developer.
- 12.3 Return of Materials and Information. Upon termination or expiration of this Agreement, Area Developer shall immediately deliver to Franchisor the Manuals and all other records, files, and any instructions containing Dog Haus Confidential Information which are in Area Developer's possession and all copies thereof (all of which are acknowledged to be the property of Franchisor).
13. COVENANTS
No Prior Experience, Information or Knowledge. Area Developer specifically acknowledges and agrees that prior to becoming an area developer of Franchisor, Area Developer had no experience, information or knowledge whatsoever about restaurants that offer any combination of freshly prepared, cooked to order, high quality gourmet hot dogs, sausages, hamburgers, chicken or plant-based food products or a Dog Haus Restaurant and that Area Developer's knowledge of the Dog Haus Confidential Information was obtained solely from Franchisor, following Area Developer's training by Franchisor and Area Developer's subsequent operation of the Dog Haus Restaurant under the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, several obligations remain in effect even after the termination or expiration of the Area Development Agreement. These include restrictions on opening additional Dog Haus restaurants, payment of monies due to Dog Haus, return of materials and information, and non-compete covenants.
Specifically, the Area Developer cannot develop any further Dog Haus restaurants and has no further rights or obligations under the terminated Area Development Agreement or related Dog Haus Franchise Agreements. However, they can continue to operate existing Dog Haus restaurants under franchise agreements that remain active. Dog Haus retains the right to develop, operate, and franchise new locations without restriction.
The Area Developer must promptly pay all outstanding sums to Dog Haus and its affiliates upon termination or expiration. If the termination results from a default by the Area Developer, these sums include damages, costs, expenses, and attorney's fees incurred by Dog Haus. The Area Developer must also return all manuals, records, files, and instructions containing Dog Haus confidential information. Furthermore, for two years after the agreement ends, the Area Developer and each owner are restricted from engaging in or providing services to any competitive business within a two-mile radius of a Dog Haus restaurant or franchised location. This non-compete clause has exceptions for ownership of less than 5% of a publicly traded competitive business and may be reduced in scope by Dog Haus.