Under what circumstances can Dog Haus refuse a transfer of ownership of a Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Accordingly, to protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, Area Developer shall not offer, sell, or negotiate the sale of its rights under this Agreement to any third party, either in Area Developer's own name or in the name and/or on behalf of Franchisor, except as otherwise provided in this Agreement.
Area Developer acknowledges and agrees that Area Developer has no right, by operation of law or otherwise, to sell, assign, transfer, pledge, donate, encumber or otherwise deal with, directly or indirectly, (i) any interest in this Agreement; or (ii) the right to use the Dog Haus System or the Dog Haus Marks granted pursuant to this Agreement (an "Assignment") without Franchisor's prior written consent.
Franchisor shall not unreasonably withhold its consent to an Assignment if, in Franchisor's judgment, Area Developer satisfies the conditions to the Assignment identified in this Agreement.
- Unless the Parties otherwise agree in writing, Area Developer shall not make any Assignment of this 9.2.1 Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by Area Developer in the Development Area.
As a condition to Franchisor's consent to such an Assignment, the assignee must execute Franchisor's Then-Current form of Franchise Agreement for each Dog Haus Restaurant sold to the assignee.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the company places restrictions on the transfer of franchise ownership to protect the Dog Haus system, trademarks, trade secrets, and associated goodwill. Dog Haus requires prior written consent from the franchisor for any sale, transfer, assignment, subletting, or encumbrance of rights related to the Dog Haus Restaurant, the Franchise Agreement, or the Lease.
Dog Haus will not unreasonably withhold consent to an assignment if the Area Developer meets the conditions outlined in the agreement. Unless otherwise agreed, an Area Developer must make any assignment of the agreement in conjunction with a concurrent assignment of all Dog Haus Restaurants owned and operated by the Area Developer in the Development Area to the same approved assignee. As a condition of consent, the assignee must execute Dog Haus's current form of Franchise Agreement for each Dog Haus Restaurant sold to the assignee.
Dog Haus can terminate the agreement without opportunity to cure if any purported assignment or transfer of interest in the agreement, Dog Haus Restaurants, or assets is made to a third party without prior written consent. Similarly, transfer of equity ownership interests to a third party without prior written consent can lead to termination. These stipulations ensure that Dog Haus maintains control over who operates franchises and upholds brand standards.
Prospective franchisees should carefully review the conditions for assignment in the Franchise Agreement and understand that failure to obtain franchisor consent can result in termination of the agreement. This is a common practice in franchising, as franchisors want to ensure that new owners meet their standards and are capable of maintaining the brand's reputation.