Can Dog Haus reduce the scope of the non-compete covenant, and if so, under what conditions?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as Franchisor otherwise approves in writing, commencing upon the date of (i) an Assignment permitted under Article 14, (ii) the Expiration Date of this Agreement, (iii) the termination of this Agreement (regardless of the cause for
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisor can approve modifications to the non-compete covenant in writing. Specifically, Item 15.3 addresses the non-competition agreement after the expiration or termination of the franchise agreement. This section states that the restrictions on operating a competitive business within a certain radius of a Dog Haus location do not apply if Dog Haus otherwise approves in writing.
This written approval from Dog Haus provides a potential avenue for franchisees to negotiate the terms of the non-compete agreement. A franchisee might seek such approval if they wish to engage in a business that could be seen as competitive but does not directly undermine the Dog Haus brand.
However, it is important to note that Dog Haus is not obligated to grant such approval, and it is within their discretion to determine whether to modify the non-compete agreement. Prospective franchisees should carefully consider the implications of the non-compete clause and discuss any potential concerns with Dog Haus before signing the Franchise Agreement.