Under what conditions can a Dog Haus Area Development Agreement be extended?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In Area Development Agreement (Exhibit B) | Summary | |
|---|---|---|---|
| a. | Length of the term of the Area Development | Article 3 | 5 years or the date you sign the Franchise Agreement for the last Franchised Restaurant necessary to satisfy your development obligations, whichever is earlier. |
| b. Renewal or extension of the term | Section 2.6 | If you satisfy the Development Obligation and desire to develop, open and operate additional Franchised Restaurants in the Development Area, you will have the right to extend the term of your Development Agreement for an additional 5 years provided you comply with the conditions in the Area Development Agreement. | |
| c. | Requirements for Area Developer to renew or extend | Section 2.6 | You must notify us you wish to renew no less than 180 prior to the expiration date of your Area Development Agreement, sign our then-current Area Development Agreement, which will contain your additional development obligations during the renewal term; you must sign a general release; you may be asked to sign a Franchise Agreement that contains terms and conditions materially different from those in your previous agreements; you must have fulfilled all of your obligations under the Area Development Agreement; you must demonstrate your financial ability to implement and complete your renewal development obligations; you must pay the renewal fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, an Area Development Agreement can be extended under specific conditions. The initial term of the Area Development Agreement is 5 years or until the franchisee signs the Franchise Agreement for the last restaurant needed to fulfill their development obligations, whichever comes first.
To extend the agreement for an additional 5 years, the Area Developer must satisfy the initial development obligations and express a desire to develop, open, and operate more Dog Haus restaurants within the designated Development Area.
Specifically, the Area Developer must notify Dog Haus of their intent to renew at least 180 days before the expiration date of the current agreement. They must also sign Dog Haus's then-current Area Development Agreement, which will include additional development obligations for the renewal term. Furthermore, the Area Developer needs to sign a general release, demonstrate the financial ability to complete the renewal development obligations, and pay the renewal fee. Dog Haus may also require the Area Developer to sign a Franchise Agreement with terms and conditions that are materially different from previous agreements. Finally, the Area Developer must have fulfilled all obligations under the existing Area Development Agreement to be eligible for an extension.