After termination or expiration of the Dog Haus Area Development Agreement, can the Franchisor develop Dog Haus restaurants in the former Development Area?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1 No Right to Open Additional Restaurants. To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, upon termination or expiration of this Agreement: (i) Area Developer shall have no further right to develop any Dog Haus Restaurants; (ii) Area Developer shall have no further rights or obligations under this Agreement or the Dog Haus Franchise Agreements that were terminated; (iii) Area Developer shall have the right to continue to own and operate all Dog Haus Restaurants Opened by Area Developer prior to the termination date under Franchise Agreements with Franchisor that remain in full force and effect on the termination date; and (iv) Franchisor may thereafter develop, open and operate, and grant franchises to third parties to develop, open and operate Dog Haus Restaurants at any location within or outside of the Development Area, without restriction.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, upon termination or expiration of the Area Development Agreement, Dog Haus has the right to develop, open, and operate Dog Haus restaurants, or grant franchises to third parties to do so, at any location within or outside the former Development Area without any restrictions. This clause protects the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with them.
This means that if a Dog Haus Area Development Agreement ends, either through expiration or termination, the area developer loses all rights to develop further Dog Haus restaurants. Dog Haus then has the freedom to establish new franchises or operate restaurants themselves in that area.
For a prospective area developer, this highlights the importance of fulfilling the terms of the agreement to avoid termination. It also emphasizes that upon expiration, the developer does not retain any exclusive rights to the territory and should consider renewal options if continued development in the area is desired. This is a fairly standard clause in area development agreements, ensuring the franchisor can maintain and grow the brand even if an area developer relationship ends.