factual

Under what circumstances does Article 11 of the Dog Haus franchise agreement NOT restrict activity?

Dog_Haus Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 11.7 No Restriction.

Nothing in this Article 11 is intended to prohibit or restrict any activity which prohibition or restriction violates Franchisee's employees' rights to engage in protected concerted activity under the National Labor Relations Act.

Source: Item 22 — CONTRACTS (FDD page 87)

What This Means (2025 FDD)

According to Dog Haus's 2025 Franchise Disclosure Document, Article 11 of the franchise agreement, which generally deals with confidential information, does not intend to prohibit or restrict any activity that violates a franchisee's employees' rights to engage in protected concerted activity under the National Labor Relations Act. This means that while Article 11 focuses on maintaining the confidentiality of the Dog Haus System and its associated information, it carves out an exception to ensure that employees' rights to organize and act collectively are not infringed upon.

For a prospective Dog Haus franchisee, this is an important consideration. It means that while they are obligated to protect Dog Haus's confidential information, they cannot use Article 11 to prevent their employees from engaging in activities protected by labor laws. This could include unionization efforts or collective bargaining.

This provision reflects a commitment to compliance with labor laws and ensures that the franchise agreement does not overreach in restricting employee rights. Franchisees should be aware of this exception and ensure their actions align with both the franchise agreement and applicable labor regulations.

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.