Under what circumstances would a Dog Haus franchisee's failure to keep their restaurant open NOT be considered 'Abandonment'?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Abandon" means (i) Franchisee's failure, at any time during the Term, to keep the Franchised Restaurant open and operating for business for a period of five (5) consecutive days, except as provided in the Manuals; (ii) Franchisee's failure to keep the Franchised Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchised Restaurant, unless the failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement); (iii) the withdrawal of permission from the Landlord that results in Franchisee's inability to continue operation of the Franchised Restaurant at the Franchised Location; or (v) a closure of the Franchised Restaurant required by Applicable Law.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee's failure to keep their restaurant open and operating for business will not be considered 'Abandonment' under specific circumstances. These exceptions are detailed in the definition of 'Abandon' within the franchise agreement.
Specifically, the failure to operate is excused if it is due to 'Force Majeure,' provided the franchisee continues to comply with the agreement. 'Force Majeure' typically refers to unforeseeable circumstances that prevent someone from fulfilling a contract, such as natural disasters or government regulations. Additionally, if the landlord withdraws permission, preventing the franchisee from operating at the franchised location, or if a closure is required by applicable law, it would not be considered abandonment.
It's important for a prospective Dog Haus franchisee to understand these exceptions, as 'Abandonment' can lead to termination of the franchise agreement. Franchisees should ensure they understand what constitutes 'Force Majeure' under the agreement and what steps they need to take to remain in compliance during such events. They should also maintain open communication with their landlord and stay informed about any applicable laws that could impact their restaurant's operation.