What is required to offer ownership interests in a Dog Haus Area Developer by private offering?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Securities, partnership or other ownership interests in Area Developer may not be offered to the public under the Securities Act of 1933, as amended, nor may they be registered under the Securities Exchange Act of 1934, as amended, or any comparable federal, state or foreign law, rule or regulation.
Such interests may be offered by private offering or otherwise only with the prior written consent of Franchisor, which consent shall not be unreasonably withheld.
All materials required for any private offering by federal or state law shall be submitted to Franchisor for a limited review as discussed below prior to being filed with any governmental agency; and any materials to be used in any exempt offering shall be submitted to Franchisor for such review prior to their use.
No offering by Area Developer shall imply that Franchisor is participating in an underwriting, issuance or offering of securities of Area Developer or Franchisor, and Franchisor's review of any offering materials shall be limited solely to the subject of the relationship between Area Developer and Franchisor, and its Affiliates.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, offering securities, partnership, or other ownership interests in an Area Developer through a private offering requires specific procedures. First, the Area Developer must obtain prior written consent from Dog Haus, which the document states will not be unreasonably withheld.
Second, all materials required for the private offering by federal or state law must be submitted to Dog Haus for a limited review before being filed with any governmental agency. Similarly, any materials to be used in an exempt offering must also be submitted to Dog Haus for review before their use.
Finally, the offering by the Area Developer must not imply that Dog Haus is participating in an underwriting, issuance, or offering of securities of the Area Developer or Dog Haus itself. Dog Haus's review of any offering materials is limited solely to the relationship between the Area Developer and Dog Haus and its affiliates. This ensures that Dog Haus maintains its distance from the Area Developer's financial activities while still exercising oversight to protect its brand and interests.