Under what conditions will a Dog Haus franchisee be charged $500 for a re-inspection of the 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, a franchisee may be charged an "Interim Management Fee" of $500 per day if Dog Haus elects to assume interim management of the franchised restaurant. This fee is in addition to the actual out-of-pocket costs Dog Haus incurs for the management services.
Dog Haus can assume interim management after giving the franchisee written notice that they are in default of the Franchise Agreement. This action is to protect the Dog Haus System, Marks, Trade Secrets, and associated goodwill. However, assuming interim management is optional for Dog Haus, not an obligation.
The franchisee remains responsible for their obligations under the Franchise Agreement even if Dog Haus assumes interim management. Dog Haus will not be liable for any debts, losses, costs, or expenses incurred during the interim management period, and the franchisee must indemnify Dog Haus against any claims related to the interim management, except those arising from Dog Haus's gross negligence or willful misconduct. Dog Haus can delegate its interim management responsibilities to any designee, employee, or agent.