Under what conditions will Dog Haus execute the Additional Area Development Agreement?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
If Area Developer has so executed and returned the Additional Area Development Agreement, and has satisfied the conditions precedent set forth in Section 2.6.2, Franchisor shall execute the Additional Area Development Agreement, and return a fully executed copy to Area Developer.
- 2.6.2 Franchisor shall execute the Additional Area Development Agreement, if, and only if, (i) Franchisor elects to grant the Additional Development Rights to Area Developer; (ii) Area Developer has fully performed all of its obligations under this Agreement and all other agreements between Franchisor and Area Developer and is in Good Standing on the date of the Additional Development Notice and on the date of Franchisor signs the Additional Area Development Agreement; (iii) Area Developer has demonstrated Area Developer's Then-Current financial ability to timely implement and complete the Additional Development Obligation; (iv) Area Developer continues to operate no less than the aggregate number of Dog Haus Restaurants in the Development Area as required by the Minimum Development Obligation; (v) Area Developer has executed the Additional Area Development Agreement and delivered it to Franchisor together with the development fees and initial development fees payable to Franchisor for the Additional Development Rights; and (vi) Area Developer executes and delivers to Franchisor a General Release in a form acceptable to Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus will execute the Additional Area Development Agreement if the Area Developer executes and returns the Additional Area Development Agreement and satisfies all conditions.
Specifically, Dog Haus will execute the agreement only if it elects to grant the additional development rights to the Area Developer. The Area Developer must have fully performed all obligations under all agreements with Dog Haus and be in good standing on the date of the Additional Development Notice and when Dog Haus signs the Additional Area Development Agreement. The Area Developer must also demonstrate the financial ability to implement and complete the Additional Development Obligation.
Furthermore, the Area Developer must continue to operate at least the minimum required number of Dog Haus restaurants in the Development Area. The Area Developer needs to have executed and delivered the Additional Area Development Agreement to Dog Haus, along with all required development and initial development fees for the Additional Development Rights. Finally, the Area Developer must execute and deliver a general release in a form acceptable to Dog Haus.