Can Dog Haus sell the Dog Haus System without franchisee approval?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.3 Rights Reserved by Franchisor.
The license granted under this Agreement is nonexclusive and Franchisee shall have no territorial or protective rights.
Franchisor and its Affiliates expressly reserve all other rights with respect to the Dog Haus System, the Dog Haus Marks and Dog Haus Restaurants, including the exclusive right, in their discretion, directly or indirectly, without paying Franchisee any compensation or granting Franchisee any rights in the same to: (i) develop, own and operate, and to grant licenses and franchises to third parties to develop, own and operate, Dog Haus Restaurants at any location outside Franchisee's Protected Area regardless of its proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant licenses and franchises to third parties to develop, own and operate, any other business, including a beverage and snack or food business, other than a Competitive Business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location within or outside Franchisee's Protected Area regardless of its proximity to the Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, and license others to sell or distribute, Dog Haus Branded Products, Dog Haus Proprietary Products and Sub-Branded Products from any location within or outside Franchisee's Protected Area regardless of proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail advertising, 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, advertising, cobranding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or license other Dog Haus Restaurants or third parties to deliver and cater at any location within or outside of the Protected Area without compensation to Franchisee, and to establish a delivery and Catering Services policies in the future which may restrict the delivery and Catering Services jurisdiction of Franchisor or of other Dog Haus Franchisees; (vi) develop, own or operate and to grant licenses or franchises to third parties to develop, own or operate Dog Haus Restaurants at Non-Traditional Venues within or outside Franchisee's Protected Area regardless of their proximity to the Franchised Restaurant; (vii) acquire the assets or ownership interests of one or more businesses
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Dog Haus Franchise Disclosure Document, Dog Haus retains significant rights regarding the Dog Haus System. Specifically, Dog Haus has the exclusive right to further develop the Dog Haus System and grant licenses or franchises to third parties without providing any compensation or rights to existing franchisees. This includes opening Dog Haus restaurants at any location outside a franchisee's protected area.
Dog Haus also reserves the right to develop and operate other businesses, even those in the food industry (excluding Competitive Businesses), under different brands, regardless of their proximity to a franchisee's location. Furthermore, Dog Haus can sell or distribute Dog Haus branded products through various channels, including the internet, mail order, and catering, both within and outside a franchisee's protected area.
Dog Haus maintains control over its internet presence and can use the Dog Haus Marks online without restriction. They can also establish delivery and catering service policies that may impact a franchisee's service area. These rights allow Dog Haus to expand and evolve its brand and distribution methods without needing individual franchisee consent, which is a fairly standard practice in franchising.