What right and obligation does the Area Developer accept regarding the Dog Haus Marks and System?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
urants, which Area Developer alone controls, but only constitute standards to which Area Developer must adhere when exercising Area Developer's control over the day-to-day operations of the Dog Haus Restaurants consistent with the policies of Franchisor. Area Developer shall comply with each Franchise Agreement and shall develop and operate the Dog Haus Restaurants in conformity with the methods, standards, and specifications that Franchisor may from time to time prescribe in the Manuals or otherwise. Since every detail of the Dog Haus System is essential in order to develop and maintain quality operating standards, to increase the demand for the products and services sold by Dog Haus Restaurants under the Dog Haus System and to protect the Dog Haus Marks and Franchisor's reputation and goodwill, Franchisor shall have the right to disapprove, as it believes necessary, any modification of, or addition to, the Dog Haus System suggested by Area Developer that is reasonably likely to have an adverse material effect on the Dog Haus System, the Dog Haus Marks or Franchisor's reputation or goodwill.
7. DOG HAUS MARKS
Franchisor and its Affiliates continue to develop, use and control the use of the Dog Haus Marks in order to identify for the public the source of services and products marketed under the Dog Haus Marks and the Dog Haus System,
and to represent the Dog Haus System's high standards of quality, appearance and service. To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same:
- 7.1 Ownership and Goodwill of Dog Haus Marks. Area Developer acknowledges that its right to use the Dog Haus Marks is derived solely from this Agreement and is limited to use in operating as Area Developer pursuant to and in compliance with this Agreement and as an Dog Haus Area Developer pursuant to the Dog Haus Franchise Agreements between Area Developer and Franchisor. Any unauthorized use of the Dog Haus Marks by Area Developer shall constitute a Default under this Agreement and an infringement of Franchisor's and Franchisor's Affiliate's rights in and to the Dog Haus Marks. Area Developer acknowledges and agrees that as between Franchisor and Area Developer (i) Franchisor owns the Dog Haus Marks and the Dog Haus System; (ii) Area Developer owns no goodwill or rights in the Dog Haus Marks or the Dog Haus System except for the license granted by this Agreement; and (iii) Area Developer's use of the Dog Haus Marks and any goodwill established by that use shall inure to the exclusive benefit of Franchisor. Area Developer agrees not to contest, or assist any other person to contest, the validity of Franchisor's rights and interest in the Dog Haus Marks or the Dog Haus System either during the Term or after this Agreement terminates or expires.
- Limitations on Use. If Area Developer is an Entity, Area Developer shall not use the Dog Haus Marks, or 7.2 Franchisor's trade name, or any words or symbols which are confusingly phonetically or visually similar to the Dog Haus Marks, as all or part of Area Developer's name. In addition, Area Developer shall not use any Dog Haus Mark (i) with any prefix, suffix, or other modifying words, terms, designs, or symbols (other than logos licensed to Area Developer under this Agreement); (ii) in connection with unauthorized services or products; (iii) as part of any domain name or electronic address maintained on the Internet, the World Wide Web, or any other similar proprietary or common carrier electronic delivery system; or (iv) in any other manner not expressly authorized in writing by Franchisor. Area Developer shall give all notices of trademark and service mark registration as Franchisor specifies and shall use and obtain all fictitious or assumed name registrations required by Franchisor or under applicable law. Area Developer further agrees that no service mark other than "Dog Haus" or other Dog Haus Marks specified by Franchisor shall be used in marketing, promoting, or operating the Dog Haus Restaurants.
- 7.3 Modifications. Franchisor reserves the right to (i) modify or discontinue licensing any of the Dog Haus Marks; (ii) add new names, marks, designs, logos or commercial symbols to the Dog Haus Marks and require that Area Developer use them; and (iii) require that Area Developer introduce or observe new practices as part of the Dog Haus System in operating the Dog Haus Restaurants. Area Developer acknowledges and agrees that the term Dog Haus Marks means the specific names, marks, designs, logos or commercial symbols licensed by Franchisor at any given point in time, subject to Franchisor's right to impose changes. Area Developer shall comply, at Area Developer's sole expense, with Franchisor's directions regarding changes in the Dog Haus Marks and Dog Haus System within a reasonable time after written notice from Franchisor. Franchisor shall have no liability to Area Developer for any cost, expense, loss or damage that Area Developer incurs in complying with Franchisor's directions and conforming to required changes.
- Defense of Dog Haus Marks and Dog Haus System. Franchisor shall have the sole right to handle disputes with Area Developers and third parties concerning Franchisor's or Franchisor's Affiliates' ownership of, rights in, or Area Developer's use of, the Dog Haus Marks or the Dog Haus System.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Area Developer has specific rights and obligations concerning the Dog Haus Marks and System. The Area Developer's right to use the Dog Haus Marks is solely derived from the Area Development Agreement and is limited to operating as an Area Developer in compliance with the agreement and the Dog Haus Franchise Agreements. Any unauthorized use of the Dog Haus Marks constitutes a default under the agreement and an infringement of Dog Haus's rights. The Area Developer acknowledges that Dog Haus owns the Dog Haus Marks and System, and the Area Developer gains no ownership of goodwill or rights, except for the license granted by the agreement. All goodwill from the Area Developer's use of the Dog Haus Marks benefits Dog Haus exclusively. The Area Developer cannot contest the validity of Dog Haus's rights to the Dog Haus Marks or System during or after the agreement.
The Area Developer cannot use the Dog Haus Marks or trade name, or similar marks, as part of their entity's name. They also cannot use the Dog Haus Marks with unauthorized modifications, in connection with unauthorized products/services, as part of a domain name, or in any way not expressly authorized by Dog Haus. The Area Developer must use all trademark and service mark registration notices as specified by Dog Haus and obtain any required fictitious or assumed name registrations. Only the "Dog Haus" service mark or other Dog Haus Marks specified by Dog Haus can be used in marketing or operating the Dog Haus Restaurants. Dog Haus reserves the right to modify or discontinue licensing any Dog Haus Marks, add new marks, and require the Area Developer to use them, as well as introduce new practices as part of the Dog Haus System. The Area Developer must comply with changes to the Dog Haus Marks and System at their own expense within a reasonable time after written notice from Dog Haus, and Dog Haus is not liable for any costs incurred by the Area Developer in complying with these changes.
The Area Developer must notify Dog Haus immediately of any improper use of the Dog Haus Marks or System, any confusingly similar marks used by third parties, any business practices that unfairly simulate the Dog Haus System, or any claims against the Area Developer based on their use of the Dog Haus Marks or System. Dog Haus has the sole right to handle disputes concerning the Dog Haus Marks or System. The Area Developer cannot settle any claim without Dog Haus's consent and must cooperate fully with Dog Haus in defending claims and protecting Dog Haus's rights. If a third-party claim is not based on the Area Developer's misuse of the Dog Haus Marks or System, Dog Haus will defend and indemnify the Area Developer, provided they are notified promptly and cooperate fully. The Area Developer cannot make any independent demands or prosecute claims related to the Dog Haus Marks.