Who is responsible for the Dog Haus franchised business in the absence of the Principal Owner?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
You must designate a Principal Owner acceptable to us who will be responsible for the operational decisions of your Franchised Restaurant. Your Principal Owner must devote his or her full time to the Franchised Restaurant and must own at least 10% interest in your equity and voting rights (unless you are a publicly held entity or a wholly-owned subsidiary of a publicly-held entity) when you sign your Franchise Agreement. Under certain circumstances we may waive the requirement that your Principal Owner must have a 10% interest in your equity and voting rights. You must also designate a General Manager who will be the individual responsible for your Franchised Business in the absence of the Principal Owner. Your General Manager does not have to own an equity interest in you or the franchise. Your Franchised Restaurant must, at all times, be directly supervised by the Principal Owner. Your Principal Owner, if applicable, must, unless otherwise agreed in writing (i) devote 100% of his or her time and best efforts solely to the operation of your Dog Haus Restaurant; (ii) meet our educational, experience, financial and other reasonable criteria for the position, as contained in the Manuals or otherwise in writing; (iii) be an owner with 10% or more (direct or indirect) of your equity and voting rights, and (iv) be approved by us.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 61–62)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a General Manager is responsible for the franchised business in the absence of the Principal Owner. The franchisee must designate a Principal Owner, acceptable to Dog Haus, who is responsible for the operational decisions of the Franchised Restaurant.
The Principal Owner must devote their full time to the Dog Haus restaurant and must own at least a 10% interest in equity and voting rights, unless the franchisee is a publicly held entity or a wholly-owned subsidiary of a publicly-held entity. Dog Haus may waive the 10% ownership requirement under certain circumstances.
The General Manager does not have to own an equity interest in the franchise. The Dog Haus restaurant must be directly supervised by the Principal Owner at all times. Both the Principal Owner and the General Manager must successfully complete the ServSafe Food Safety Certification Program and the Certified Beer Server Program.