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Under what circumstances is Dog Haus or its affiliates not liable to the franchisee for delays or delivery failures?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor or its Affiliates shall not be liable to Franchisee for any delay or delivery failure caused by Force Majeure.

Franchisor or its Affiliate shall not be liable to Franchisee for unavailability of, or delay in shipment or receipt of, merchandise because of temporary product shortages, order backlogs, production difficulties, delays, unavailability of transportation, fire, strikes, work stoppages, or other causes beyond the reasonable control of Franchisor or its Affiliate.

If any goods or products sold by Franchisor or its Affiliate are not in sufficient supply to fully fulfill all orders, Franchisor or its Affiliate may allocate the available supply among itself, its Affiliates and others, including Franchisee and other Dog Haus Franchisees, in any way Franchisor or its Affiliate deems appropriate, which may result in Franchisee not receiving any allocation of certain goods or products as a result of a shortage.

Source: Item 22 — CONTRACTS (FDD page 87)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus or its affiliates will not be held liable to the franchisee for any delays or failures in delivery that are caused by Force Majeure. Additionally, Dog Haus or its affiliates are not liable for the unavailability of, or delays in, the shipment or receipt of merchandise due to temporary product shortages, order backlogs, production difficulties, delays, unavailability of transportation, fire, strikes, work stoppages, or other causes beyond their reasonable control.

This means that if unforeseen circumstances like natural disasters, strikes, or significant supply chain disruptions occur, Dog Haus franchisees may experience delays in receiving necessary products or merchandise, and they will not be able to hold Dog Haus accountable for these delays. This is a fairly standard clause in franchise agreements, as it protects the franchisor from liability for events outside of their direct control.

Furthermore, if goods or products sold by Dog Haus or its affiliates are not in sufficient supply to fulfill all orders, Dog Haus or its affiliates may allocate the available supply among themselves, their affiliates, and other franchisees in any way they deem appropriate. This allocation may result in a franchisee not receiving any allocation of certain goods or products due to a shortage. This clause highlights the risk that a franchisee may not always receive the supplies they need, especially during times of high demand or supply chain issues, and that Dog Haus has the discretion to decide how to distribute limited resources.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.