Does Dog Haus require a franchisee to assign all of their Dog Haus restaurants if they assign the franchise agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.2.1 Unless the Parties otherwise agree in writing, Franchisee shall not make any Assignment of this Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by Franchisee.
As a condition to Franchisor's consent to an Assignment, the assignee must execute Franchisor's Then-Current form of Franchise Agreement for each Franchised Restaurant sold to the assignee.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee must assign all Dog Haus restaurants they own and operate if they assign the franchise agreement, unless the parties involved agree otherwise in writing. Specifically, the franchisee cannot sell their rights under the agreement without assigning all of their Dog Haus restaurants to the same approved assignee. This requirement protects the Dog Haus system, marks, trade secrets, and associated goodwill.
This stipulation ensures that a franchisee cannot selectively sell off desirable locations while retaining less profitable ones, which could negatively impact the overall brand. It also maintains consistency in operations and brand representation, as the assignee must execute Dog Haus's current franchise agreement for each restaurant acquired.
For a prospective franchisee, this means that if they plan to sell their Dog Haus business, they must be prepared to sell all locations simultaneously to a single buyer approved by Dog Haus, unless an exception is made in writing. This could limit the pool of potential buyers and affect the negotiation process. It is important to consider this requirement when evaluating the long-term investment and exit strategy for a Dog Haus franchise.
This requirement is a fairly common practice in franchising, designed to maintain brand consistency and protect the franchise system. However, it's crucial for potential franchisees to fully understand this obligation and discuss any potential exceptions or specific circumstances with Dog Haus before entering into a franchise agreement.