Under what conditions will Dog Haus not unreasonably withhold consent to an assignment by the franchisee?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall not unreasonably withhold its consent to an Assignment if, in Franchisor's judgment, Franchisee satisfies the conditions to the Assignment identified in this Agreement.
- 14.2.1 Unless the Parties otherwise agree in writing, Franchisee shall not make any Assignment of this Agreement except in conjunction with a concurrent Assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by Franchisee.
As a condition to Franchisor's consent to an Assignment, the assignee must execute Franchisor's Then-Current form of Franchise Agreement for each Franchised Restaurant sold to the assignee.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, a franchisee is generally prohibited from assigning their rights under the Franchise Agreement without the franchisor's prior written consent. However, Dog Haus will not unreasonably withhold consent to an assignment if the franchisee satisfies the conditions to the assignment identified in the Franchise Agreement.
One key condition is that the franchisee must make any assignment of the agreement in conjunction with a concurrent assignment to the same approved assignee of all Dog Haus Restaurants then owned and operated by the franchisee, unless otherwise agreed in writing. As a condition to Dog Haus's consent, the assignee must execute Dog Haus's then-current form of Franchise Agreement for each franchised restaurant sold to the assignee.
Prospective franchisees should carefully review Article 14 of the Franchise Agreement, as referenced in Item 22, to fully understand the conditions and requirements for assignment. Understanding these conditions is crucial for franchisees who may wish to sell their franchise in the future.