Under what conditions does Dog Haus have the option to assume the lease of a Franchised Location?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, you and your Landlord must enter into our Option to Obtain Lease Assignment and/or your lease must provide for the following: (i) the Lease may not be amended, assigned or sublet without our prior written consent; (ii) we have the right (but not the obligation) to succeed to your rights under the Lease if you fail to exercise any option to renew, and/or extend the term of the Lease; (iii) if you default under the Lease, the Landlord must notify us in writing at least 15 days prior to the termination or non-renewal of the Lease; (iv) we have an option to assume the Lease upon the termination or expiration of the Lease for any reason by giving written notice of the election to you and the Landlord; (v) you have the unrestricted right, without the Landlord's consent, to assign or sublet the Franchised Location to us, or any franchisee or licensee approved by us; and (vi) we have the right to enter the Franchised Location to remove all of the Dog Haus Marks from the Franchised Location and modify the décor of the Franchised
Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, Dog Haus has the option to assume the lease of a franchised location under specific conditions outlined in the lease agreement. The lease must include a provision granting Dog Haus the option to assume the lease upon its termination or expiration for any reason, provided Dog Haus gives written notice of this election to both the franchisee and the landlord.
In addition, the lease must not be amended, assigned, or sublet without Dog Haus's prior written consent. The landlord is also obligated to notify Dog Haus in writing at least 15 days before the termination or non-renewal of the lease if the franchisee defaults. Furthermore, the franchisee must have the unrestricted right to assign or sublet the franchised location to Dog Haus, or any franchisee or licensee approved by Dog Haus, without needing the landlord's consent.
These stipulations ensure that Dog Haus has the ability to maintain control over the location and brand presence, even if a franchisee's operation ceases. This protects Dog Haus's interests and allows for a smooth transition to a new franchisee or other business arrangement, preventing potential disruptions to the brand's reputation and customer base. The franchisee benefits by having clear guidelines and obligations regarding the lease, while the landlord is informed of Dog Haus's involvement and rights concerning the property.