Under what conditions can Dog Haus assume interim management of a Franchised Restaurant?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
cause, of this Agreement or any other agreement between the Parties, Franchisor may, at its option, terminate any or all of the agreements.
- 16.6 Notice Required By Law. Notwithstanding anything to the contrary contained in this Article 16, if any valid Applicable Law of a competent Governmental Authority having jurisdiction over this Agreement and the Parties shall limit Franchisor's rights of termination under this Agreement or shall require longer notice periods than those set forth above, this Agreement shall be deemed amended to conform to the minimum notice periods
or restrictions upon termination required by that Applicable Law. Franchisor shall not, however, be precluded from contesting the validity, enforceability or application of Applicable Laws in any action, hearing or dispute relating to this Agreement or the termination of this Agreement.
- 16.7 Interim Management. To protect the Dog Haus System, the Dog Haus Marks, the Dog Haus Trade Secrets and the goodwill associated with the same, after Franchisor has given Franchisee written notice that Franchisee is in Default, Franchisor may (but is not obligated to) assume interim management of the Franchised Restaurant during the pendency of any cure period or in lieu of immediately terminating this Agreement. If Franchisor elects to assume interim management of the Franchised Restaurant (i) Franchisor's election will not relieve Franchisee of Franchisee's obligations under this Agreement; (ii) Franchisor will not b
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus may assume interim management of a franchised restaurant under specific circumstances to protect the Dog Haus system, marks, trade secrets, and associated goodwill. This action can be taken after Dog Haus has provided the franchisee with written notice of default. This interim management can occur during any cure period the franchisee has to correct the default, or it can be implemented instead of immediately terminating the franchise agreement.
If Dog Haus chooses to assume interim management, the franchisee remains responsible for their obligations under the franchise agreement. Dog Haus will not be held liable for any debts, losses, costs, or expenses incurred during this interim management period. Dog Haus will charge an Interim Management Fee, which is currently $500 per day, in addition to any out-of-pocket costs Dog Haus incurs for providing the management services.
The franchisee is required to indemnify and hold Dog Haus harmless from any claims, demands, judgments, fines, losses, liabilities, costs, amounts paid in settlement, and reasonable expenses, including attorney's fees, that arise from the interim management of the restaurant. The only exception to this indemnification is for issues arising solely from the gross negligence or willful misconduct of Dog Haus. Dog Haus is also permitted to delegate its responsibilities related to interim management to any designee, employee, or agent.