Is Dog Haus restricted from operating a competitive business near a Dog Haus franchise?
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 has some restrictions regarding operating a competitive business near a franchise. Specifically, Dog Haus retains the right to develop, own, and operate businesses that are not competitive under different marks and systems, regardless of their proximity to a franchisee's location. This means Dog Haus can operate other types of businesses near a franchise, as long as they are not directly competitive and operate under a different brand.
For prospective franchisees, this implies that while Dog Haus will not directly compete with its own franchisees under the Dog Haus brand, it could operate other, non-competitive businesses nearby. This is a common practice in franchising, allowing franchisors to diversify their business interests without directly infringing on a franchisee's territory. However, franchisees should be aware that other businesses owned by Dog Haus could still draw customers from the same general area.
Furthermore, Dog Haus also reserves the right to sell Dog Haus branded products through various channels, such as the internet, mail order, and catering, both within and outside a franchisee's protected area. They can also market on the internet using the Dog Haus marks. These activities could potentially impact a franchisee's sales, as customers might opt to purchase products online or through catering services instead of visiting the physical restaurant location. Franchisees need to consider these factors when evaluating the potential market and revenue for their Dog Haus franchise.
Dog Haus also has the right 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.