What is the subject of Exhibit B referenced in the Dog Haus Area Development Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Owner" means each of the individuals listed on Exhibit B and each future direct or indirect shareholder, member, general or limited partner, trustee or other Equity owner of Area Developer.
If Area Developer is an Entity, each Owner and each Owner's spouse shall jointly and severally guarantee Area Developer's payment and performance of its obligations under this Agreement under a Guarantee in the form of Exhibit C.
- "Principal Owner" means the individual designated by Area Developer on Exhibit B, and accepted by Franchisor, to serve as the authorized representative of Area Developer, who shall act as Area Developer's representative in all matters with Franchisor, as Area Developer's liaison with Franchisor, the Franchisor Owners and the Owners, who shall have the authority to act on behalf of Area Developer during the Term without the participation of any other Owner, and who shall own at least ten percent (10%) of the Equity of Area Developer.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Exhibit B of the Area Development Agreement pertains to the individuals listed as Owners of the Area Developer entity. Specifically, it identifies the Principal Owner, who is the authorized representative of the Area Developer and must own at least ten percent (10%) of the Area Developer's equity.
This exhibit is important because it clarifies who is responsible for the Area Developer's obligations under the agreement. If the Area Developer is an entity, each Owner and their spouse must guarantee the Area Developer's performance and payments under the agreement via a Guarantee in the form of Exhibit C.
The designation of a Principal Owner ensures that Dog Haus has a clear point of contact and decision-maker within the Area Developer's organization. This individual acts as the liaison with Dog Haus and has the authority to represent the Area Developer in all matters without requiring the involvement of other owners. The Principal Owner's equity stake further aligns their interests with the success of the Dog Haus franchise.