Can Dog Haus reduce the scope of the non-compete covenants, and if so, under what conditions?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.9 Effect of Applicable Law. In the event any portion of the covenants in this Article 13 violates laws affecting Area Developer, or is held invalid or unenforceable in a final judgment to which Franchisor and Area Developer are parties, then the maximum legally allowable restriction permitted by Applicable Law shall control and bind Area Developer.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the scope of the non-compete covenants can be reduced based on applicable law. Specifically, if any part of the non-compete agreement violates laws affecting the Area Developer or is deemed invalid by a final judgment involving both Dog Haus and the Area Developer, then the maximum legally permissible restriction under the applicable law will govern and bind the Area Developer.
This means that the enforceability and scope of the non-compete provisions are subject to legal review and may be limited by local or state laws. This clause protects the franchisee from overly broad or illegal restrictions that might otherwise be imposed. It ensures that the non-compete is only as restrictive as legally allowed, providing a safeguard against potentially unfair limitations.
For a prospective Dog Haus franchisee, this is an important consideration. It is advisable to consult with legal counsel to understand the specific non-compete laws in their jurisdiction and how they might affect the enforceability of the Dog Haus non-compete agreement. This clause provides a degree of flexibility and protection, ensuring that the franchisee is not bound by unlawful or unenforceable restrictions.