Does Dog Haus reserve the right to grant franchises outside of a franchisee's Protected 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 Protected Area, regardless of their 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 your Protected 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 your Protected Area regardless of their proximity to your Franchised Restaurant.
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 the unrestricted right to grant franchises to third parties to develop and operate franchised restaurants outside a franchisee's Protected Area. This right is explicitly reserved by Dog Haus, regardless of the proximity of these new franchised restaurants to an existing franchisee's location. This means that while franchisees are granted a Protected Area, Dog Haus can still establish other franchises nearby.
This reservation of rights extends beyond traditional franchise locations. Dog Haus also maintains the right to develop, own, and operate other businesses, excluding competitive businesses, under different marks and systems, irrespective of their proximity to a franchisee's restaurant. Additionally, Dog Haus can sell or distribute Dog Haus-branded products at any location, whether inside or outside a franchisee's Protected Area, through various channels like the internet, mail order, and catering.
Furthermore, Dog Haus reserves the right to market on the internet and use Dog Haus marks online without restriction. They can also deliver and cater, or license others to do so, both within and outside a franchisee's Protected Area, without providing any compensation to the franchisee. Dog Haus can also establish a delivery and catering policy that may restrict a franchisee's delivery jurisdiction. Dog Haus also reserves the right to operate or franchise restaurants at Non-Traditional Venues, such as those within captive market sites, institutional settings, or transportation terminals, both inside and outside a franchisee's Development Area, without any obligation to compensate the franchisee.