Under what circumstances will the Dog Haus Remote Kitchen Agreement automatically terminate?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
7.2 Provisions in Remote Kitchen Agreement. Franchisee acknowledges and agrees that Franchisee has been advised that (i) defaults under the Remote Kitchen Agreement must be cured, if capable of cure, within seven (7) days after a party's receipt of written notice of termination from the other party or the Remote Kitchen Agreement may be terminated; (ii) the Remote Kitchen Agreement will automatically terminate if the "Head Lease" between the Remote Kitchen Landlord and the landlord of the Remote Kitchen Facility terminates; (iii) under the Remote Kitchen Agreement, upon any termination of the Remote Kitchen Agreement other than for the reason stated in Section 7.2(ii), Franchisor shall have a right of first refusal under the Remote Kitchen Agreement to thereafter assign the rights previously granted to Franchisee under the Franchise Agreement and this Addendum to a third party, occupy the Remote Kitchen Premises itself or permit the expiration or termination of the Remote Kitchen Agreement to occur.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the Remote Kitchen Agreement will automatically terminate if the "Head Lease" between the Remote Kitchen Landlord and the landlord of the Remote Kitchen Facility terminates.
This means that if the primary lease for the building where the Dog Haus Remote Kitchen is located is terminated between the Remote Kitchen Landlord (the entity leasing space to Dog Haus) and the building's owner, the Dog Haus Remote Kitchen Agreement will also automatically end. This could occur for various reasons, such as the Remote Kitchen Landlord failing to pay rent or violating the terms of their lease with the building owner.
For a prospective Dog Haus franchisee, this highlights the importance of understanding the stability and terms of the "Head Lease." If that lease is terminated, the franchisee could lose their right to operate the Remote Kitchen, even if they are in good standing with Dog Haus. It would be prudent to ask Dog Haus about the terms of the Head Lease and the Remote Kitchen Landlord's history and financial stability to assess this risk.