What are the restrictions on a Dog Haus franchisee's lease agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
mote Kitchen no later than 30 days after you sign the Franchise Agreement and the Remote Kitchen Addendum to Franchise Agreement. (Remote Kitchen Addendum to Franchise Agreement, Section 2.2).
Site Selection/Lease/Purchase of Real Estate
If you do not already have a location when you sign your Franchise Agreement, you must purchase or lease a site for your Franchised Restaurant promptly after you sign your Franchise Agreement. You must submit all demographic and other information regarding the proposed site and neighboring areas that we may require. If you will be operating a Fast Casual Restaurant or Biergarten, you must submit your proposed lease to us for approval to allow us at least 15 days to confirm that the required provisions in Section 5.2 of the Franchise Agreement have been included in the lease, and/or that you and your landlord have executed an Option to Obtain Lease Assignment in the form we specify. (Franchise Agreement, Section 5.2). You must provide us with a fully signed copy of your lease within 180 days of signing your Franchise Agreement. Our acceptance of your lease is based solely on our own interests. If we accept the proposed site, we will notify you of our preliminary acceptance of the site within about 30 days (or 15 days after you provide any supplemental information we request). Your lease must not (i) obligate us in any manner, or (ii) contain any provision inconsistent with your Franchise Agreement. In addition, you and your Landlord must enter into our Option to Obtain Lease Assignment and/or your lease must provide for the following: (i) the Lease may not be amended, assigned or sublet without our prior written consent; (ii) we have the right (but not the obligation) to succeed to your rights under the Lease if you fail to exercise any option to renew, and/or extend the term of the Lease; (iii) if you default under the Lease, the Landlord must notify us in writing at least 15 days prior to the termination or non-renewal of the Lease; (iv) we have an option to assume the Lease upon the termination or expiration of the Lease for any reason by giving written notice of the election to you and the Landlord; (v) you have the unrestricted right, without the Landlord's consent, to assign or sublet the Franchised Location to us, or any franchisee or licensee approved by us; and (vi) we have the right to enter the Franchised Location to remove all of the Dog Haus Marks from the Franchised Location and modify the décor of the Franchised
Location so that it no longer resembles, in whole or in part, a Franchised Restaurant if you fail to do so. If you request our consent for you to execute a Lease containing modified versions of the provisions in Section 5.2 of the Franchise Agreement, or to execute a modified version of the Option to Obtain Lease Assignment, then, whether or not we ultimately grant such consent, you must reimburse us upon demand for our reasonable attorneys' fees incurred to review, revise and/or negotiate any changes made to those provisions and/or to the Option to Obtain Lease Assignment. (Franchise Agreement, Section 5.2).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, franchisees face several restrictions and requirements regarding their lease agreements. Before signing a lease, franchisees must submit the proposed lease to Dog Haus for approval, allowing at least 15 days for review to ensure that the required provisions in Section 5.2 of the Franchise Agreement are included. Additionally, franchisees must provide Dog Haus with a fully signed copy of the lease within 180 days of signing the Franchise Agreement. Dog Haus's acceptance of the lease is based solely on its own interests.
The lease agreement itself is subject to specific constraints. The lease must not obligate Dog Haus in any manner or contain any provision inconsistent with the Franchise Agreement. Furthermore, the franchisee and landlord must enter into Dog Haus's Option to Obtain Lease Assignment, and the lease must include certain provisions. These provisions stipulate that the lease cannot be amended, assigned, or sublet without Dog Haus's prior written consent. Dog Haus retains the right, but not the obligation, to assume the franchisee's rights under the lease if the franchisee fails to exercise any option to renew or extend the term.
Additional restrictions are in place to protect Dog Haus's interests in the event of a default or termination. If the franchisee defaults under the lease, the landlord must notify Dog Haus in writing at least 15 days before termination or non-renewal. Dog Haus has the option to assume the lease upon termination or expiration for any reason, with written notice to both the franchisee and landlord. The franchisee has the unrestricted right, without the landlord's consent, to assign or sublet the location to Dog Haus or any franchisee or licensee approved by Dog Haus. Finally, Dog Haus has the right to enter the location to remove its marks and modify the décor if the franchisee no longer resembles a franchised restaurant. If a franchisee requests consent to modify these lease provisions, they must reimburse Dog Haus for attorney's fees incurred to review and negotiate the changes, regardless of whether consent is ultimately granted.