What rights does the Franchise Agreement grant to the franchisee regarding the Dog Haus System?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
o and one-half percent (2.5%) of Gross Sales.
"Remote Kitchen" (also known as a delivery-only restaurant or an online-only restaurant) means a food service business used for the production of delivery and take-away food products located in a partially equipped commercial kitchen within a multi-kitchen facility with other restauranteurs that only serves customers through online food ordering through third-party Food Delivery Services, usually on a computer application or through a website that is downloaded by the customer to a mobile device. Customers may place their orders for food products online with the Food Delivery Service they choose for the food they want delivered. The Food Delivery Service then transmits the order to the Remote Kitchen for preparation, picks up the order at the Remote Kitchen Facility and delivers the food to the customer for a fee established by the Food Delivery Service. Alternatively, customers may place their orders directly with the Remote Kitchen and pick up their order at the Remote Kitchen Facility.
"Remote Kitchen Facility" means the facility in which the Remote Kitchen Premises are located.
"Royalty Fees" means the fees that Franchisee shall pay Franchisor on Tuesday of each week during the Term equal to four percent (4%) of the Gross Sales of the Remote Kitchen during the immediately preceding week.
2. GRANT.
- 2.1 Grant. Franchisor hereby awards Franchisee, and Franchisee hereby accepts, the nonexclusive right, license and obligation to use and display the Dog Haus Marks and use the Dog Haus System to continually operate one (1) Remote Kitchen at, and only at, the Remote Kitchen Premises during the term of the Franchise Agreement and this Addendum, upon the terms and subject to the provisions of the Franchise Agreement, this Addendum, the Remote Kitchen Agreement, and all ancillary documents related to the use of the Remote Kitchen. Franchisee shall utilize the Remote Kitchen Premises only for the operation of the Remote Kitchen. Franchisee shall not sublicense, sublease or subcontract providing for the right to operate the Remote Kitchen or to use the Dog Haus System granted pursuant to the Franchise Agreement and this Addendum. Franchisee may enter into a management agreement for right to operate the Remote Kitchen granted pursuant to the Franchise Agreement and this Addendum only with Franchisor's prior written consent. Franchisee shall, within fifteen (15) days after the Effective Date, locate one or more proposed sites that meet Franchisor's then-current standards and specifications. Franchisee shall obtain a fully executed Remote Kitchen Agreement no later than thirty (30) days after the Effective Date. The Remote Kitchen shall Open For Business no later than thirty (30) days after the Effective Date, unless Franchisor extends the required Opening Date in writing.
- 2.2 Protected Area. Unless Franchisor agrees otherwise in writing, Franchisee may only accept and fulfill orders from Food Delivery Service customers in its Protected Area. With Franchisor's prior written consent, Franchisor may grant Franchisee the non-exclusive right to fulfill orders from Food Delivery Service customers in geographic areas immediately adjacent to the Protected Area who are not located within the protected area of another Dog Haus Restaurant. Franchisor may revoke this grant for any reason or no reason upon 30 days' prior written notice to Franchisee. Franchisee must advise all Food Delivery Services of these delivery restrictions imposed on Franchisee.
2.3 Area Development Agreement. If Franchisee has executed an Area Development Agreement with Franchisor, the opening of a Remote Kitchen shall count towards satisfaction of Franchisee's Minimum Development Obligation or Development Schedule.
3. TERM AND RENEWAL.
- 3.1. Term and Renewal. The rights granted to Franchisee under this Addendum shall become effective as of the Effective Date and shall extend for the period of time set forth in the Remote Kitchen Agreement. If the Remote Kitchen Agreement provides for a right to renew or extend the term of the Remote Kitchen Agreement, Franchisee shall have the right and option to renew or extend the term of the Franchise Agreement and this Addendum for an additional period of time equal to the time permitted under the Remote Kitchen Agreement. The Franchise Agreement and this Addendum are not otherwise renewable.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisee receives a nonexclusive right and license to use and display the Dog Haus Marks and use the Dog Haus System. This allows them to operate one Remote Kitchen at a specific location for the duration of the Franchise Agreement, Addendum, and Remote Kitchen Agreement. The franchisee is obligated to use the Remote Kitchen Premises only for the operation of the Remote Kitchen and cannot sublicense, sublease, or subcontract the right to operate the Remote Kitchen or use the Dog Haus System without prior written consent from Dog Haus.
The franchisee must locate one or more proposed sites that meet Dog Haus's standards within fifteen days of the Effective Date and obtain a fully executed Remote Kitchen Agreement within thirty days after the Effective Date. The Remote Kitchen must open for business no later than thirty days after the Effective Date, unless Dog Haus extends the required opening date in writing. Unless otherwise agreed, the franchisee can only accept and fulfill orders from Food Delivery Service customers within their Protected Area. With Dog Haus's prior written consent, the franchisee may fulfill orders from customers in adjacent geographic areas not within another Dog Haus Restaurant's protected area, but Dog Haus can revoke this right with 30 days' notice.
Dog Haus and its affiliates maintain control over the Dog Haus Marks to ensure consistent quality and service. The franchisee's right to use the Dog Haus Marks is solely derived from the Franchise Agreement and is limited to operating as a franchisee in compliance with the agreement. Unauthorized use of the Dog Haus Marks constitutes a breach of the agreement and an infringement of Dog Haus's rights. The franchisee acknowledges that Dog Haus owns the Dog Haus Marks and the Dog Haus System, and any goodwill established through the franchisee's use of the marks benefits Dog Haus exclusively. The franchisee cannot contest the validity of Dog Haus's rights to the Dog Haus Marks or the Dog Haus System during or after the agreement's term.