Does Dog Haus reserve the right to develop Franchised Restaurants outside of the Development Area?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
We expressly reserve the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly to: (i) develop, own and operate, and to grant franchises to third parties to develop, own and operate, Franchised Restaurants outside of your Development Area, regardless of its proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant franchises to third parties to develop, own and operate any other business, other than a competitive business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location regardless of their proximity to your Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, or license others to sell or distribute, Dog Haus Branded Products at any location within or outside of the Development Area regardless of its proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail marketing, catering and through other distribution methods; (iv) market on the Internet and use the Dog Haus Marks on the Internet, including all use of Websites, domain names, URLs, directory addresses, email addresses, metatags, linking, marketing, co-branding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or to license to other Franchised Restaurants or third parties to deliver and cater at any location within or outside of your Protected Area without compensation to you, and to establish a delivery and catering policy in the future which may restrict the delivery and catering jurisdiction of any Dog Haus franchisee; and (vi) own or operate and to franchise or license others to own or operate Franchised Restaurants at any Non-Traditional Venue within and outside of your Development Area regardless of their proximity to your Franchised Restaurant. We are not required to pay you any compensation if we exercise any of the rights specified above.
Source: Item 12 — TERRITORY (FDD pages 53–57)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus retains specific rights regarding the development of franchised restaurants outside a franchisee's Development Area. Dog Haus expressly reserves the right to develop, own, and operate franchised restaurants, or grant franchises to others for the same, outside of a franchisee's Development Area. This is regardless of the proximity to the franchisee's restaurant. This means that even if a franchisee has an Area Development Agreement, Dog Haus can still establish other Dog Haus locations nearby.
This reservation of rights extends beyond just franchised restaurants. Dog Haus can also develop and operate other businesses (excluding competitive ones) under different brands, and sell or distribute Dog Haus branded products through various channels like the internet or catering, both inside and outside the Development Area. Dog Haus also retains the right to market on the internet using Dog Haus trademarks and to handle delivery and catering services without compensating the franchisee.
Furthermore, Dog Haus can operate or franchise restaurants in Non-Traditional Venues, both within and outside the Development Area, without any obligation to compensate the franchisee. These Non-Traditional Venues include locations like office buildings, stadiums, airports, and food courts. This broad reservation of rights gives Dog Haus significant flexibility in expanding its brand presence, but it also means that franchisees may face competition from other Dog Haus outlets or channels, even in close proximity to their own locations.
For a prospective franchisee, this highlights the importance of understanding the specific terms of the Franchise Agreement and Area Development Agreement regarding territorial rights and potential competition. While the Area Development Agreement grants the right to develop restaurants within a specified area, it does not guarantee exclusivity against other Dog Haus ventures initiated by the franchisor itself.