Dog_Haus 2025 Franchise FAQ - FDD Ninja

Question 1

What is the stated experience of the Dog Haus trainers?

Accepted Answer

In our discretion, we may vary the length and content of the Pre-Opening Initial Training Program based on the experience and skill level for each individual attending the Pre-Opening Initial Training program. As of December 31, 2024, the primary instructional material for the Pre-Opening Initial Training Program and Additional Post-Opening Training Programs is the Manuals. We do not have a set schedule for the training courses and we hold initial training classes as needed to train new Dog Haus franchisees. Training is conducted by members of our headquarters and operations team under the supervision of Alan Bonaparte with 8 months of experience with us. Members of our training team are Juan Canche with 13 years of experience with us and DHI, Josue Antonio with 13 years of experience with us and DHI, and Qristen Allen with 6 years of experience with us and Keith Gertler who has worked for us and for DHI in an operations capacity since May 2017. Additional personnel of Franchisor who have direct experience in areas of operation of a Dog Haus Restaurant (for example, opening, operations or systems management) will assist Mr. Bonaparte with the development and administration of the Pre-Opening Initial Training Program and Additional Post-Opening Initial Training Programs. Our trainers have 57 years of experience in operating quick-service and fast-casual restaurants, with 40 years of that experience with us and DHI. Training will be conducted as often as necessary to ensure that franchisees complete training before their Franchised Restaurant opens for business.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)

Question 2

What is the total number of classroom training hours in the Dog Haus pre-opening initial training program?

Accepted Answer

General Manager and/or other supervisorial or managerial personnel must attend and complete the Pre-Opening Initial Training Program to our satisfaction. Your Principal Owner must attend and complete 2 days of marketing training at our corporate office as a part of the Pre-Opening Initial Training Program.

The Pre-Opening Initial Training Program will consist of approximately 2 weeks of virtual training that must be completed before the Franchised Restaurant opens for business. After completion of virtual training, you will participate in 8 to 13 days of in person training at a Dog Haus Restaurant in Los Angeles, California or at another location we designate. If the Franchised Restaurant is the first Franchised Restaurant you will operate, we will provide a training manual and other materials at no charge to you. However, you may be required to pay us reimbursement for up 2 round trip flights, 2 hotel rooms, 2 rental vehicles, and a per diem in the sum of \$60 for each of our employees who provide training to defray a portion of our direct cost to provide the Pre-Opening Initial Training Program. (**Franchise Agreement, Section 6.1**). You must pay all travel, living, compensation, and other expenses incurred by your Principal Owner, each General Manager and other supervisorial or managerial personnel while attending the Pre-Opening Initial Training Program.

We will not provide the Pre-Opening Initial Training Program if you or your affiliates own another Dog Haus Restaurant, or your Franchise Agreement is a renewal Franchise Agreement. (**Franchise Agreement, Section 6.1** and **Section 7.2**). In addition, before the Franchised Restaurant opens for business, your Principal Owner and General Manager and other supervisorial or managerial personnel must successfully complete the ServSaf

Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)

Question 3

What is the total number of on-the-job training hours in the Dog Haus pre-opening initial training program?

Accepted Answer

General Manager and/or other supervisorial or managerial personnel must attend and complete the Pre-Opening Initial Training Program to our satisfaction. Your Principal Owner must attend and complete 2 days of marketing training at our corporate office as a part of the Pre-Opening Initial Training Program.

The Pre-Opening Initial Training Program will consist of approximately 2 weeks of virtual training that must be completed before the Franchised Restaurant opens for business. After completion of virtual training, you will participate in 8 to 13 days of in person training at a Dog Haus Restaurant in Los Angeles, California or at another location we designate. If the Franchised Restaurant is the first Franchised Restaurant you will operate, we will provide a training manual and other materials at no charge to you. However, you may be required to pay us reimbursement for up 2 round trip flights, 2 hotel rooms, 2 rental vehicles, and a per diem in the sum of \$60 for each of our employees who provide training to defray a portion of our direct cost to provide the Pre-Opening Initial Training Program. (**Franchise Agreement, Section 6.1**).

Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)

Question 4

What are all the fees a Dog Haus franchisee might incur, combining information from Item 5 and Item 6?

Accepted Answer

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

### **Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is $40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

### **Area Development Program**

You must pay us a development fee (the "**Development Fee**") as follows:

### **Fast Casual/Biergarten Restaurant**

The Development Fee is $20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of $40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial Franchise Fee of $20,000 for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant.

All fees discussed in this Item 5 are fully earned by us when paid and are not refundable under any circumstances, even if you, as an Area Developer, fail to open any Dog Haus Fast Casual Restaurants, Dog Haus Biergarten Restaurants or Dog Haus Remote Kitchens.

If you choose to use a different architect, he or she must be licensed and approved by us and you must pay a $1,500 plan review fee directly to our architect.

“**Royalty Fees**” means the fees that Franchisee shall pay Franchisor on Tuesday of each week during the Term equal to six percent (6%) of the Gross Sales of the Franchised Restaurant during the immediately preceding week.

- “**Sub-Branded Products Marketing Expenditure**” means the $5,000 Franchisee shall spend to market each new Sub-Branded Product offered from the Franchised Restaurant.

- “**Transfer Fee**” means the $17,500 fee that Franchisee must pay Franchisor as a condition precedent to an Assignment of this Agreement.

If Franchisee fails to secure the new Franchised Location within twelve (12) months of the date of Franchisor's approval of the new Franchised Location, Franchisor shall have the right to estimate and bill Franchisee for Royalty Fees for the time period following the expiration of the twelve (12) month period based upon the Royalty Fees received for the Franchised Restaurant during the identical periods of the last preceding

Franchisee shall pay Franchisor its Then-Current Additional Pre-Opening Initial Training Fee for each additional trainee.

| TYPE OF EXPENDITURE | LOW | HIGH | METHOD OF PAYMENT | WHEN DUE |  |
|---|---|---|---|---|---|
|  |  |  |  |  |  |
| Initial Franchise Fee1 | $40,000 | $40,000 | Cash | AtSigning | Us |
| BUILD-OUT COSTS |  |  |  |  |  |
| Utility Deposits, Fees & Licenses2 | $5,000 | $10,000 | Cash | As Incurred | City, County, State |
| Pre-Construction Cost (Architect, | $45,000 | $85,000 | As Arranged | As Incurred | Dog Haus Approved |
| Project Manager, Plans, Permits) 3 |  |  |  |  | Suppliers |
| Leasehold/Construction4 | $125,000 | $180,000 | As Arranged | As Incurred | Dog Haus Approved Suppliers |
| FURNITURE, FIXTURES, |  |  |  |  |  |
| EQUIPMENT & SIGNAGE |  |  |  |  |  |
| Exterior Signage, Artwork; Graphics | $5,000 | $22,000 | AsArranged | As Incurred | Dog Haus Approved |
| & Interior Signage |  |  |  |  | Suppliers |
| POS System and Software;;Printers and Related Hardware and Software; Sound System; Televisions 5 | $9,412 | $15,300 | As Arranged | As Incurred | Dog Haus Approved Suppliers |
| Equipment/Smallwares; Hood | $50,000 | $85,000 | As Arranged | As Incurred | Dog Haus Approved Suppliers |
| OTHER |  |  |  |  |  |
| DesignatedFurniture;Trash Can Caddies & Trash Cans; Menu Boards & Ad Boxes; Drink Station; Railing | $8,525 | $36,000 | As Arranged | Before Opening | Pyramid Powder |
| OpeningInventory | $10,000 | $15,000 | As Arranged | Before Opening | Dog Haus Approved Suppliers |
| Beer & Wine/Liquor License Costs6 | $1,500 | $7,000 | Lump Sum | Before Opening | Governmental Agencies and Professional Services |

Question 5

What were the highest and lowest gross sales figures reported for individual franchised Dog Haus Biergartens?

Accepted Answer

d Average Gross | That Did Not Attain | Haus |
|  | (Notes 8 and 9) |  | (Notes 10 and 11) | Sales | Average Gross Sales | Biergartens (Notes 12 and 13) |
| 27 | \$49,862,175 | \$3,123,138/ \$931,408 | \$1,846,747 | 12/44% | 15/56% | \$1,738,084 |
![](_page_75_Picture_0.jpeg)

# TABLE 5 GROSS SALES AT FRANCHISED DOG HAUS BIERGARTENS OPEN MORE THAN ONE YEAR ON DECEMBER 31, 2023 (NOTES 1 – 13)

| Number of Franchised Dog Haus Biergartens (Notes 1 and 6) | Total Gross Sales of Franchised Dog Haus Biergartens (Notes 8 and 9) | Highest/Lowest Gross Sales | Average Gross Sales of Franchised Dog Haus Biergartens (Notes 10 and 11) | Number/Percentage of Franchised Dog Haus Biergartens That Exceeded Average Gross Sales | Number/Percentage of Franchised Dog Haus Biergartens That Did Not Attain Average Gross Sales | Median Gross |
|---|---|---|---|---|---|---|
|  |  |  |  |  |  | Sales of |
|  |  |  |  |  |  | Franchised Dog |
|  |  |  |  |  |  | Haus |
|  |  |  |  |  |  | Biergartens |
|  |  |  |  |  |  | (Notes 12 and |
|  |  |  |  |  |  | 13) |
| 27 | $44,940,302 | $3,300,336/ | $1,664,456 | 12/44% | 15/56% |  |
|  |  | $810,781 |  |  |  |  |
# TABLE 6 GROSS SALES AT FRANCHISED DOG HAUS BIERGARTENS OPEN MORE THAN ONE YEAR ON DECEMBER 31, 2022 (NOTES 1 – 13)

| Number of Franchised Dog Haus Biergartens (Notes 1 and 6) | Total Gross Sales of Franchised Dog Haus Biergartens (Notes 8 and 9) | Highest/Lowest Gross Sales | Average Gross Sales of Franchised Dog Haus Biergartens (Notes 10 and 11) | Number/Percentage of Franchised Dog Haus Biergartens That Exceeded Average Gross Sales | Number/Percentage of Franchised Dog Haus Biergartens That Did Not Attain Average Gross Sales | Median Gross |
|---|---|---|---|---|---|---|
|  |  |  |  |  |  | Sales of |
|  |  |  |  |  |  | Franchised Dog |
|  |  |  |  |  |  | Haus |
|  |  |  |  |  |  | Biergartens |
|  |  |  |  |  |  | (Notes 12 and |
|  |  |  |  |  |  | 13) |
| 28 | $49,834,566 | $2,964,142/ | $1,779,806 | 13/46% | 15/54% |  |
|  |  | $983,260 |  |  |  |  |
![](_page_76_Picture_0.jpeg)

# TABLE 7 GROSS SALES AT FRANCHISED REMOTE KITCHENS

### OPEN MORE THAN ONE YEAR ON DECEMBER 31, 2024 (NOTES 1 – 13)

| Number of Franchised Remote Kitchens (Notes 1 and 7) | Total Gross Sales of Franchised Remote Kitchens (Notes 8 and 9) | Highest/Lowest Gross Sales | Average Gross Sales of Franchised Remote Kitchens (Notes 10 and 11) | Number/Percentage of Franchised Remote Kitchens That Exceeded Average Gross Sales | Number/Percentage | Median Gross Sales of Franchised Remote Kitchens (Notes 12 and 13) |
|---|---|---|---|---|---|---|
|  |  |  |

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 73–83)

Question 6

How is the 'Initial Franchise Fee' defined for a Dog Haus Remote Kitchen, and how does it differ from the standard Franchise Agreement?

Accepted Answer

r Food Orders**. Franchisee shall have full responsibility for all food orders sent to the Remote Kitchen for fulfillment, including, without limitation, the preparation and packaging of all food orders on a timely basis in compliance with all requirements of the Franchise Agreement, including, without limitation, Articles 7, 8, 9 and 12 of th

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 7

How does the Dog Haus's initial franchise fee in Item 5 compare to the total estimated initial investment in Item 7, considering the lack of financing in Item 10?

Accepted Answer

No bankruptcy is required to be disclosed in this Item.

![](_page_13_Picture_0.jpeg)

### **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

### **Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is \$40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

### **Area Development Program**

You must pay us a development fee (the "**Development Fee**") as follows:

### **Fast Casual/Biergarten Restaurant**

The Development Fee is \$20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of \$40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial Franchise Fee of \$20

Question 8

How does the Dog Haus's initial franchise fee in Item 5 compare to the total estimated initial investment in Item 7, considering the lack of an exclusive territory in Item 12?

Accepted Answer

mental Agencies and Professional Services |![](_page_22_Picture_0.jpeg)

| TYPE OF EXPENDITURE | LOW | HIGH | METHOD OF PAYMENT | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|---|
| Grand Opening Marketing7 | $20,000 | $25,000 | AsArranged | 30 Days Before Opening and 12-16 weeks following opening | Dog Haus Approved Suppliers |
| FranchisedLocation | $12,000 | $40,000 | Cash | At Signing | Landlord |
| (Security Deposit and 3 Month’s |  |  | (non- |  |  |
| Rent)8 |  |  | refundable) |  |  |
| Insurance–Liability & Workers’ compensation (initial deposit) | $5,000 | $8,000 | Cash | Annual Premium, paid in ful

Question 9

How does the Dog Haus's initial franchise fee in Item 5 compare to the utility deposits, fees, and licenses costs in Item 7?

Accepted Answer

| TYPE OF EXPENDITURE | AMOUNT LOW LOW | HIGH | METHOD OF PAYMENT | WHEN DUE |  |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $40,000 | $40,000 | Cash | At Signing | Us |
| BUILD-OUT COSTS |  |  |  |  |  |
| Utility Deposits, Fees & Licenses2 | $5,000 | $10,000 | Cash | As Incurred | City, County, State |

Question 10

How does the Dog Haus's initial franchise fee in Item 5 compare to the utility deposits, fees, and licenses costs in Item 7, considering the lack of financing in Item 10?

Accepted Answer

| TYPE OF EXPENDITURE | AMOUNT LOW LOW | HIGH | METHOD OF PAYMENT | WHEN DUE |  |
|---|---|---|---|---|---|
| Initial Franchise Fee1 | $40,000 | $40,000 | Cash | At Signing | Us |
| BUILD-OUT COSTS |  |  |  |  |  |
| Utility Deposits, Fees & Licenses2 | $5,000 | $10,000 | Cash | As Incurred | City, County, State |
| Pre-Construction Cost (Architect, Project Manager Plans, Permits)3 | $45,000 | $85,000 | As Arranged | As Incurred | Dog Haus Approved Supplier |

---

[Item 5: INITIAL FEES]

![](_page_14_Picture_0.jpeg)

### **Refunds, Different Fees and Financing**

All fees discussed in this Item 5 are fully earned by us when paid and are not refundable under any circumstances, even if you, as an Area Developer, fail to open any Dog Haus Fast Casual Restaurants, Dog Haus Biergarten Restaurants or Dog Haus Remote Kitchens. We use the proceeds from Initial Franchise Fees to defray a portion of our expenses in connection with the sale and establishment of franchises, such as: (i) costs related to developing and improving our services; (ii) expenses of preparing and registering this Disclosure Document; (iii) legal fees; (iv) accounting fees; (v) costs of obtaining and screening franchisees; and (vi) general administrative expenses. We may reduce, finance, defer or waive the Initial Franchise Fee or Development Fee if and when we determine, it is warranted by a unique or compelling situation. We generally do not provide financing for the Initial Franchise Fee or Development Fee. We may do so if and when we determine, it is warranted by a unique or compelling situation.

Question 11

What is the Dog Haus's initial franchise fee as stated in Item 5, and how does it compare to the estimated initial investment range in Item 7?

Accepted Answer

d to be disclosed in this Item.

![](_page_13_Picture_0.jpeg)

### **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

### **Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is \$40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

### **Area Development Program**

You must pay us a development fee (the "**Development Fee**") as follows:

### **Fast Casual/Biergarten Restaurant**

The Development Fee is \$20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of \$40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial F

Question 12

What is the Dog Haus's initial franchise fee as stated in Item 5, and how does it compare to the pre-construction costs listed in Item 7?

Accepted Answer

d to be disclosed in this Item.

![](_page_13_Picture_0.jpeg)

### **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

### **Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is \$40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

### **Area Development Program**

You must pay us a development fee (the "**Development Fee**") as follows:

### **Fast Casual/Biergarten Restaurant**

The Development Fee is \$20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of \$40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial Franchise Fee of \$20,000 for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant.

### **Remote Kitchen**

The Development Fee is \$20,000 for each Dog Haus Remote Kitchen you will develop under an Area Development Agreement, other than your first Dog Haus Remote Kitchen, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Remote Kitchens. You must sign the Franchise Agreement for your first Dog Haus Remote Kitchen and pay us an Initial Franchise Fee of \$40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Remote Kitchen you will develop, you must pay us an Initial Franchise Fee of \$20,000 for each subsequent Dog Haus Remote Kitchen.

### **Initial Purchases from Our Affiliate**

Before you open your Franchised Restaurant for business, you must purchase designated furniture, trash can caddies, trash cans, lighting fixtures, menu boards and ad boxes for your Franchised Restaurant from our affiliate, Pyramid Powder.

Question 13

What are all the obligations a Dog Haus franchisee has, combining information from Item 8 and Item 9?

Accepted Answer

uisition/lease | Sections 5.1-5.2 of the Area Development Agreement; Section 2.2 of the Remote Kitchen Addendum to Franchise Agreement |  |
![](_page_36_Picture_0.jpeg)

| Obligation                                                | Section(s) In Agreements                                                                                                                                                                                                                                                                                    | Item                 |
|-----------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------|
| b. Pre-opening purchases/leases | Sections 5.1 – 5.3 of the Franchise Agreement; Article 5 of the Area Development Agreement | Item 5 and 16 |
| c. Site development and other pre opening requirements | Sections 5.3 and 5.4 of the Franchise Agreement; Article 2, Article 6 and Exhibit A of the Area Development Agreement; Section 2.2 of the Remote Kitchen Addendum to Franchise Agreement | Items 7, 11 and 16 |
| d. Initial and ongoing training | Sections 6.1 and 6.2 of the Franchise Agreement | Items 6 and 11 |
| e. Opening | Section 5.4 of the Franchise Agreement | Item 11 |
| f. Fees | Sections 4.1– 4.6, 4.9, 5.2, 5.5, 6.1, 6.9, 7.2 – 7.4, 7.11, 7.28, 14.4.7, 15.7, 16.7, 17.2, 19.7 of the Franchise Agreement; Sections 4.1, 4.2, 5.4, 5.5, 8.4, 9.4.7, 15.6 and Exhibit A of the Area Development Agreement; Article 5 of the Remote Kitchen Addendum to Franchise Agreement | Items 5, 6 and 7 |
| g. Compliance with standards and policies/Manuals | Article 7 and Section 15.1 of the Franchise Agreement; Section 6.2 and Article 16 of the Area Development Agreement | Item 11 |
| h. Trademarks and proprietary | Article 9 of the Franchise Agreement; Articles 7 | Items 11, 13, and 14 |
| information | and 8 of the Area Development Agreement |  |
| i. Restrictions on products/services | Sections 8.1 – 8.3 of the Franchise Agreement; | Items 8 and 16 |
| offered | Section 6.2 of the Area Development Agreement |  |
| j.

Question 14

What is the relationship between the initial franchise fee for a Dog Haus restaurant in Item 5 and the build-out costs listed in Item 7?

Accepted Answer

| TYPE OF EXPENDITURE | LOW | HIGH | METHOD OF PAYMENT | WHEN DUE |  |
|---|---|---|---|---|---|
|  |  |  |  |  |  |
| Initial Franchise Fee1 | $40,000 | $40,000 | Cash | AtSigning | Us |
| BUILD-OUT COSTS |  |  |  |  |  |
| Utility Deposits, Fees & Licenses2 | $5,000 | $10,000 | Cash | As Incurred | City, County, State |
| Pre-Construction Cost (Architect, | $45,000 | $85,000 | As Arranged | As Incurred | Dog Haus Approved |
| Project Manager, Plans, Permits) 3 |  |  |  |  | Suppliers |
| Leasehold/Construction4 | $125,000 | $180,000 | As Arranged | As Incurred | Dog Haus Approved Suppliers |

### **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

### **Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is $40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

All fees discussed in this Item 5 are fully earned by us when paid and are not refundable under any circumstances, even if you, as an Area Developer, fail to open any Dog Haus Fast Casual Restaurants, Dog Haus Biergarten Restaurants or Dog Haus Remote Kitchens. We use the proceeds from Initial Franchise Fees to defray a portion of our expenses in connection with the sale and establishment of franchises, such as: (i) costs related to developing and improving our services; (ii) expenses of preparing and registering this Disclosure Document; (iii) legal fees; (iv) accounting fees; (v) costs of obtaining and screening franchisees; and (vi) general administrative expenses.

You must perform or have performed any construction, remodeling, or additions necessary to cause the premises to conform to applicable Federal, state, county, city, local laws, ordinances, codes, rules and regulations and meet our requirements for the layout design, construction, fixturization, equipment and installation, and the trade dress appearance of a Franchised Restaurant.

Construction and remodeling costs vary widely depending upon the location, design, the condition and configuration of existing services and facilities such as air conditioning, electrical and plumbing, lease terms and the local real estate market.

These estimates presume that you will receive a "**vanilla shell**" from your landlord.

For purposes of these estimates, a "**vanilla shell**" includes leased premises with one restroom built to local code specifications in a location specified in the tenant improvement plans for your Dog Haus Restaurant; (2) sheet-rocked, taped and painted walls; (3) concrete floor, broom clean; (4) grease interceptor; (5) 200-40 amp low voltage electrical service distributed to local code specifications; (6) fluorescent 4' x 2' lighting fixtures with usually one fixture per 150-200 square feet; (7) HVAC system distributed at one ton per 175-200 square feet depending upon local climate conditions and use, generally with a gas heating system and an electrical air conditioning system; (8) fire sprinklers per local code specifications distributed throughout the premises designed for retail use; and (9) water, gas, cable and telephone service stubbed to the rear of the premises.

If you do not receive a "vanilla shell" from your landlord, your leasehold construction costs may substantially exceed these estimates.

Question 15

What is the relationship between the initial franchise fee for a Dog Haus restaurant in Item 5 and the lack of financing options in Item 10?

Accepted Answer

[Item 5: INITIAL FEES]

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

**Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is $40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

**Area Development Program**

You must pay us a development fee (the "**Development Fee**") as follows:

**Fast Casual/Biergarten Restaurant**

The Development Fee is $20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of $40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial Franchise Fee of $20,000 for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant.

Unless otherwise noted, all fees are uniformly imposed by and payable to us by electronic funds transfer or other automatic payment mechanism we designate and are non-refundable. You authorize us to debit from your designated primary business checking or savings operating account for each week any funds due and payable to us for royalty fees and all other sums that you owe to us or our affiliate. These estimated initial expenses are our best estimate of the costs you may incur in establishing and operating your Dog Haus Restaurant. All expenses payable to third parties are non-refundable, except as you may arrange for utility deposits and other payments. We currently do not offer financing for any purpose, but reserve the right to do so in the future. Please see Item 10 for further information. We do not guarantee your note, lease or other obligation.

All fees discussed in this Item 5 are fully earned by us when paid and are not refundable under any circumstances, even if you, as an Area Developer, fail to open any Dog Haus Fast Casual Restaurants, Dog Haus Biergarten Restaurants or Dog Haus Remote Kitchens. We use the proceeds from Initial Franchise Fees to defray a portion of our expenses in connection with the sale and establishment of franchises, such as: (i) costs related to developing and improving our services; (ii) expenses of preparing and registering this Disclosure Document; (iii) legal fees; (iv) accounting fees; (v) costs of obtaining and screening franchisees; and (vi) general administrative expenses. We may reduce, finance, defer or waive the Initial Franchise Fee or Development Fee if and when we determine, it is warranted by a unique or compelling situation. We generally do not provide financing for the Initial Franchise Fee or Development Fee. We may do so if and when we determine, it is warranted by a unique or compelling situation.

Question 16

What is the relationship between the initial franchise fee for a Dog Haus restaurant in Item 5 and the ongoing fees listed in Item 6?

Accepted Answer

d to be disclosed in this Item.

![](_page_13_Picture_0.jpeg)

### **ITEM 5 INITIAL FEES**

You must pay us an initial franchise fee (the "**Initial Franchise Fee**") as follows:

### **Single Fast Casual Restaurant/Biergarten Restaurant/ Remote Kitchen**

The Initial Franchise Fee is \$40,000 for the right to operate one Dog Haus Fast Casual Restaurant, Dog Haus Biergarten Restaurant or Dog Haus Remote Kitchen. The Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**). If you are a Dog Haus Remote Kitchen franchisee, the Initial Franchise Fee is payable in full when you sign your Franchise Agreement (**Exhibit A**) and Remote Kitchen Addendum to your Franchise Agreement (**Exhibit C**).

### **Area Development Program**

You must pay us a development fee (the "**Development Fee**") as follows:

### **Fast Casual/Biergarten Restaurant**

The Development Fee is \$20,000 for each Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop under an Area Development Agreement, other than your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant, when you sign the Area Development Agreement (**Exhibit B**) for a minimum of 2 Dog Haus Fast Casual or Dog Haus Biergarten Restaurants. You must sign the Franchise Agreement for your first Dog Haus Fast Casual or Dog Haus Biergarten Restaurant and pay us an Initial Franchise Fee of \$40,000 when you sign the Area Development Agreement. When you sign a Franchise Agreement for each subsequent Dog Haus Fast Casual or Dog Haus Biergarten Restaurant you will develop, you must pay us an Initial F

Question 17

What are all the restrictions a Dog Haus franchisee faces, combining information from Item 8 and Item 12?

Accepted Answer

a portion of the direct costs to provide the Annual Franchise Conference. You must pay the Franchise Conference Fee upon demand at 30 days before the date of the Annual Franchise Conference, whether or not you attend the Annual Franchise Conference. (**Franchise Agreement, Section 7.29**).

### **ITEM 12 TERRITORY**

### **Franchise Agreement**

You will be permitted to operate your Franchised Restaurant at a specific location that we accept, as described in your Franchise Agreement. You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. Our acceptance of your Franchised Location will be based upon a variety of factors which may include the viability of the then-current location and demographics including, number of households, household income, vehicular traffic, and number of Franchised Restaurants near the proposed new location. You may face competition from other Franchised Restaurants that we or our affiliate franchise or own and that operate at traditional sites.

You will be granted a protected territory ("**Protected Area**") of a 1/2 - 5 mile radius from your Franchised Restaurant as described in the Franchise Agreement. Your Protected Area will be designated when you have identified a site for your Franchised Restaurant. Factors that we consider in determining the size of your Protected Area include the demographics, population size, age and income levels, neighboring and adjacent retail tenants, road visibility, traffic patterns, geographical barriers and proximity of other Dog Haus Restaurants or competitors serving the same market area. Provided you are not in default under your Franchise Agreement, we will not own, operate, sell or issue a Franchised Restaurant franchise to another franchisee in your Protected Area. There are no other radius restrictions or minimum population requirements that limit where we can franchise or operate another Franchised Restaurant. You may not relocate your Franchised Restaurant to any other location without our prior written consent.

![](_page_53_Picture_0.jpeg)

If you are a Remote Kitchen franchisee, with our prior written consent, we may grant you the non-exclusive right to fulfill orders from Food Delivery Service customers in geographic areas immediately adjacent to your Protected Area who are not located within the protected area of another Dog Haus Restaurant. We may revoke this grant for any reason or no reason upon 30 days' prior written notice to you. You must advise all Food Delivery Services of these delivery restrictions imposed on you.

We expressly reserve the exclusive, unrestricted right, in our sole and absolute discretion, directly and indirectly to: (i) develop, own and operate, and to grant franchises to third parties to develop, own and operate, Franchised Restaurants outside of your Protected Area, regardless of their proximity to the Franchised Restaurant; (ii) develop, own and operate, and to grant franchises to third parties to develop, own and operate any other business, other than a competitive business, under marks and systems different from the Dog Haus Marks and the Dog Haus System at any location regardless of their proximity to your Franchised Restaurant; (iii) sell or distribute, at retail or wholesale, directly or indirectly, or license others to sell or distribute, Dog Haus Branded Products at any location within or outside your Protected Area regardless of its proximity to the Franchised Restaurant, through the Internet, mail order catalogs, direct mail marketing, catering and through other distribution methods; (iv) market on the Internet and use the Dog Haus Marks on the Internet, including all use of Websites, domain names, URLs, directory addresses, email addresses, metatags, linking, marketing, co-branding and other arrangements, and in all other forms of electronic media; (v) deliver and cater and/or to license to other Franchised Restaurants or third parties to deliver and cater at any location within or outside of your Protected Area without compensation to you, and to establish a delivery and catering policy in the future which may restrict the delivery and catering jurisdiction of any Dog Haus franchisee;

Question 18

What criteria must be met for a Dog Haus restaurant to be considered 'Open'?

Accepted Answer

under this Agreement, the form of which may differ from the form of Dog Haus Franchise Agreement attached to Franchisor's Franchise Disclosure Document (the "Disclosure **Document**") provided to Area Developer prior to the Effective Date. - Exclusive License. Except as otherwise provided in this Section 2.2 and in Section 2.4, the rights granted to Area Developer under this Agreement are exclusive during the Term so long as Area Developer is in Good Standing and neither Franchisor nor any of its Affiliates shall themselves develop, open and operate, or grant third parties the right to develop, open and operate, Dog Haus Restaurants in the Development Area during the Term. Area Developer acknowledges the Development Area may be subject to pre-existing franchises granted prior to the Effective Date. The Development Area will not contain any areas granted to other franchisees prior to the Effective Date. Existing franchisees may renew or transfer the franchise rights previously granted to them under their Area Development Agreements or Franchise Agreements. - Adherence to Development Schedule. Area Developer shall satisfy the Minimum Development Obligation by Opening the number of Dog Haus Restaurants in the Development Area within each Development Period as required by the Development Schedule set forth on Exhibit A and by continuing to operate the cumulative number of Dog Haus Restaurants required by the Minimum Development Obligation. Failure to comply with the Development Schedule shall constitute a Default under this Agreement and shall entitle Franchisor to terminate this Agreement, unless the Default results from an event of Force Majeure, in which case, the deadline to Opening a Dog Haus Restaurant may be extended by Franchisor as provided in Section 2.7. - Rights Reserved by Franchisor. Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 19

If a Dog Haus franchisee is purchasing the site for their Franchised Restaurant, when must they submit the purchase contract to Dog Haus for acceptance?

Accepted Answer

If you are purchasing the site for your Franchised Restaurant, you must submit the purchase contract to us for acceptance at least 15 days before you sign it and provide us with a fully signed copy within 15 days of the closing of the purchase transaction.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)

Question 20

What two conditions must be met to determine the 'Opening Date' of a Dog Haus restaurant?

Accepted Answer

- "Open" and "Opened" means that Area Developer has actually begun to sell food products to the public from a Dog Haus Restaurant.

- "Opening Date" means the day that (i) Area Developer receives written authorization from Franchisor and all applicable Governmental Authorities to commence business operations at a Dog Haus Restaurant; and (ii) Area Developer actually begins to offer Dog Haus Authorized Products for sale to the public from the Dog Haus Restaurant, whichever occurs last.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 21

According to the Dog Haus Development Agreement, are the expenses of the mediator shared equally regardless of the outcome of the mediation?

Accepted Answer

| Provision |  | Section In Area | Summary |
|---|---|---|---|
|  |  | Development Agreement (Exhibit B) | expenses of the mediator will be shared equally by you and us. |
|  |  |  | If the parties cannot resolve and settle the dispute through |
|  |  |  | mediations, all unresolved claims between you and us will be |
|  |  |  | submitted to binding arbitration, which will occur in Los Angeles, |
|  |  |  | California. The fees and expenses of the arbitrator will be shared |
|  |  |  | equally by you and us. |
|  |  |  | (subject to applicable state law) |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 22

According to the Dog Haus Development Agreement, are mediation expenses shared equally before or after arbitration?

Accepted Answer

| Provision                                                                             | Section In Area Development Agreement (Exhibit B) | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| u. Dispute resolution by arbitration or mediation                               | Sections 15.1 and 15.2                                  | You agree to attempt any dispute first by mediation, which will occur in Los Angeles, California. Mediation must be completed within 45 days following the date either party first gives notice of mediation, unless otherwise agreed in writing. The fees and                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|  |  | expenses of the mediator will be shared equally by you and us. | 
|  |  | If the parties cannot resolve and settle the dispute through |
|  |  | mediations, all unresolved claims between you and us will be |
|  |  | submitted to binding arbitration, which will occur in Los Angeles, |
|  |  | California. The fees and expenses of the arbitrator will be shared |
|  |  | equally by you and us. |
|  |  | (subject to applicable state law) |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 23

According to the Dog Haus Franchise Agreement addendum, what happens when provisions of the addendum conflict with the original Franchise Agreement?

Accepted Answer

| THIS ADDENDUM TO FRANCHISE AGREEMENT (this "Addendum") dated, is                                                 |  |
|------------------------------------------------------------------------------------------------------------------|--|
| intended to be a part of, and by this reference is incorporated into that certain Franchise Agreement (the       |  |
| "Franchise Agreement") dated, by and between DOG HAUS WORLDWIDE, LLC, a                                          |  |
| Delaware limited liability company, ("Franchisor") and, as franchisee                                            |  |
| ("Franchisee"). Where and to the extent that any of the provisions of this Addendum are contrary to, in conflict |
| with or inconsistent with any provision contained in the Franchise Agreement, the provisions contained in this   |
| Addendum shall control. Defined terms contained in the Franchise Agreement shall have the identical meanings     |
| in this Addendum.                                                                                                |  |

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 24

According to the Dog Haus Franchise Agreement addendum, what state's franchise investment act requirements trigger the effectiveness of each provision in the addendum?

Accepted Answer

Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Act are met independently without reference to this Addendum.

Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the General Business Law of the State of New York are met independently without reference to this Addendum.

Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Act are met independently without reference to this Addendum.

Any questionnaire and specific Acknowledgments shall not apply to prospective franchisees who are Maryland residents or who seek to purchase a franchise located in Maryland.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 25

According to the Hawaii Addendum, when are the initial fees and payments due to Dog Haus Worldwide, LLC?

Accepted Answer

- 5. Item 5 of the Franchise Disclosure Document is amended as follows:
  - "Despite the payment provisions in this Item 5, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement or Area Development Agreement and you begin to conduct business at the first Dog Haus Restaurant, at which time all initial fees and payments will become immediately due and payable. The Hawaii Department of Commerce and Consumer Affairs has imposed the fee deferral requirement because of our financial condition."

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 26

According to the Rhode Island Addendum, what happens if there is a conflict between the Addendum and the Area Development Agreement for a Dog Haus franchise?

Accepted Answer

|                                                                                                                                                                                                                                    | THIS ADDENDUM TO FRANCHISE AGREEMENT (this "Addendum") dated, is |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------|
| intended to be a part of, and by this reference is incorporated into that certain Area Development Agreement (the                                                                                                                  |                                                                  |
| "Area Development Agreement") dated, by and between DOG HAUS WORLDWIDE, LLC,                                                                                                                                                       |                                                                  |
| a California limited liability company, as Franchisor, and, as Area Developer.                                                                                                                                                     |                                                                  |
| Where and to the extent that any of the provisions of this Addendum are contrary to, in conflict with or inconsistent |  |
| with any provision contained in the Area Development Agreement, the provisions contained in this Addendum |  |
| shall control. Defined terms contained in the Area Development Agreement shall have the identical meanings in                                                                                                                      |                                                                  |
| this Addendum.                                                                                                                                                                                                                     |                                                                  |

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 27

According to the Rhode Island Addendum, what state's laws must apply to a claim enforceable under the Rhode Island Franchise Investment Act for a Dog Haus franchise?

Accepted Answer

Any provision of the Franchise Agreement restricting jurisdiction or venue to a forum outside Rhode Island or requiring the application of the laws of any state other than Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 28

Does the Dog Haus addendum apply if the jurisdictional requirements of the Act are not met independently?

Accepted Answer

Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Act are met independently without reference to this Addendum.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 29

What is the amount and purpose of the Relocation Assessment fee charged by Dog Haus if a franchisee fails to open at the new location within 12 months?

Accepted Answer

| Name Of Fee | Amount | Due Date | Remarks | |--------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | Relocation Assessment | An amount equal to the Royalty Fees you paid for your original Franchised Restaurant during the last preceding calendar year plus an additional 10%. | On demand. | If we consent to a relocation of your Franchised Restaurant, you secure the new Franchised Location and open your replacement Franchised Restaurant at the new Franchised Location within 12 months from the date we approve the new Franchised Location. If you fail to do so, we can bill you for the Relocation Assessment as described in this chart. | Source: Item 6 — OTHER FEES ¹ (FDD pages 15–22)

Question 30

What must an Area Developer do to extend the Term of the Area Development Agreement for Dog Haus by an additional five years?

Accepted Answer

- 2.6 Additional Development Rights. If Area Developer satisfies the Minimum Development Obligation before the Expiration Date and desires to develop, open and operate additional Dog Haus Restaurants in the Development Area, Area Developer shall have the right to extend the Term of this Agreement for an additional five (5) years on the terms and conditions set forth in this Section 2.6. If Area Developer desires to extend the Term of this Agreement for an additional five (5) years, Area Developer shall, no later than one hundred eighty (180) days prior to the Expiration Date, notify Franchisor in writing (the "Additional Development Notice") that Area Developer desires to do so and provide Franchisor with a proposal for the development of additional Dog Haus Restaurants in the Development Area (the "Additional Development Obligation"), setting forth the number of additional Dog Haus Restaurants proposed to be opened by Area Developer, the proposed development fees and the proposed opening dates for each Dog Haus Restaurant during the extended term. Franchisor may, but has no obligation to, grant Area Developer the Additional Development Rights described in this Section 2.6 in its sole and absolute discretion.

![](_page_177_Picture_0.jpeg)

- 2.6.1 If the Additional Development Obligation proposed by Area Developer is unacceptable to Franchisor, or if the Parties cannot reach an agreement on an alternative Additional Development Obligation within the thirty (30) day period after the date of the Additional Development Notice, this Agreement shall expire on the Expiration Date.

Franchisor and Area Developer shall execute Franchisor's Then-Current Franchise Agreement for each additional Dog Haus Restaurant to be developed and opened in the Development Area by Area Developer.

If the Additional Development Obligation proposed by Area Developer is acceptable to Franchisor, or if the Parties reach agreement on an alternative Additional Development Obligation within the thirty (30) day period after the date of the Ad

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 31

Does the assignment of operating Dog Haus Restaurants to Affiliates affect the Area Developer's Minimum Development Obligation?

Accepted Answer

Dog Haus Restaurants that are operating that are assigned to Affiliates of Area Developer with Franchisor's consent, shall count in determining whether Area Developer has satisfied the Minimum Development Obligation for so long as the applicable Affiliate continues to comply with the terms of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 32

Is the California choice of law for Dog Haus subject to applicable state law?

Accepted Answer

|    |                       | Section In       |                                                                    |
|----|-----------------------|------------------|--------------------------------------------------------------------|
|    |                       | Franchise        |                                                                    |
|    |                       | Agreement        |                                                                    |
|    |                       | (Exhibit A) and  |                                                                    |
|    |                       | in Remote        |                                                                    |
|    |                       | Kitchen          |                                                                    |
|    |                       | Addendum         |                                                                    |
|    | Provision             | (Exhibit C)      | Summary                                                            |
| s. | Modification of the   | Franchise        | The Franchise Agreement can be modified or amended only by         |
|    | agreement             | Agreement        | written agreement of all of the parties. The Manuals are subject   |
|    |                       | Sections 6.5 and | to change at any time. You must comply with any changes set        |
|    |                       | 21.5; Remote     | forth in the Manuals. Remote Kitchen Addendum can be               |
|    |                       | Kitchen          | modified or amended only by written agreement of all the           |
|    |                       | Addendum         | parties. (Remote Kitchen Addendum)                                 |
|    |                       | Section 9.2      |                                                                    |
| t. | Integration/ merger   | Franchise        | Only the terms of the Franchise Agreement and other related        |
|    | clause                | Agreement        | written agreements are binding (subject to applicable state law).  |
|  |  | Section 21.5; | Any |
|  |  |  | representations or |
|  |  |  | promises |
|  |  |  | outside |
|  |  |  | the disclosure |
|    |                       | Remote Kitchen   | document and franchise agreement may not be enforceable.           |
|    |                       | Addendum         | Only the terms of the Franchise Agreement and Remote Kitchen       |
|    |                       | Section 9.2;     | Addendum and its exhibits are binding (subject to applicable       |
|    |                       |                  | state law). No other representations or promises will be binding.  |
|    |                       |                  | (Remote Kitchen Addendum)                                          |
| u. | Dispute resolution by | Franchise        | You agree to attempt any dispute first by mediation, which will    |
|    | arbitration or        | Agreement        | occur in Los Angeles, California. Mediation must be completed      |
|    | mediation             | Sections 19.1    | within 45 days following the date either party first gives notice  |
|    |                       | and 19.2         | of mediation, unless otherwise agreed in writing. The fees and     |
|    |                       |                  | expenses of the mediator will be shared equally by you and us.     |
|    |                       |                  | If the parties cannot resolve and settle the dispute through       |
|    |                       |                  | mediations, all unresolved claims between you and us will be       |
|    |                       |                  | submitted to binding arbitration, which will occur in Los          |
|    |                       |                  | Angeles, California. The fees and expenses of the arbitrator will  |
|    |                       |                  | be shared equally by you and us.                                   |
|    |                       |                  | (subject to applicable state law)                                  |
| v. | Choice of forum       | Franchise        | All proceedings will be held in Los Angeles County, California,    |
|    |                       | Agreement        | subject to applicable state law. See the State Specific Addenda    |
|    |                       | Section 19.3     | (Exhibit H) attached to this Disclosure Document.                  |
| w.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 33

Is the choice of forum for Dog Haus proceedings subject to any exceptions?

Accepted Answer

|    |                       | Section In       |                                                                    |
|----|-----------------------|------------------|--------------------------------------------------------------------|
|    |                       | Franchise        |                                                                    |
|    |                       | Agreement        |                                                                    |
|    |                       | (Exhibit A) and  |                                                                    |
|    |                       | in Remote        |                                                                    |
|    |                       | Kitchen          |                                                                    |
|    |                       | Addendum         |                                                                    |
|    | Provision             | (Exhibit C)      | Summary                                                            |
| s. | Modification of the   | Franchise        | The Franchise Agreement can be modified or amended only by         |
|    | agreement             | Agreement        | written agreement of all of the parties. The Manuals are subject   |
|    |                       | Sections 6.5 and | to change at any time. You must comply with any changes set        |
|    |                       | 21.5; Remote     | forth in the Manuals. Remote Kitchen Addendum can be               |
|    |                       | Kitchen          | modified or amended only by written agreement of all the           |
|    |                       | Addendum         | parties. (Remote Kitchen Addendum)                                 |
|    |                       | Section 9.2      |                                                                    |
| t. | Integration/ merger   | Franchise        | Only the terms of the Franchise Agreement and other related        |
|    | clause                | Agreement        | written agreements are binding (subject to applicable state law).  |
|  |  | Section 21.5; | Any |
|  |  |  | representations or |
|  |  |  | promises |
|  |  |  | outside |
|  |  |  | the disclosure |
|    |                       | Remote Kitchen   | document and franchise agreement may not be enforceable.           |
|    |                       | Addendum         | Only the terms of the Franchise Agreement and Remote Kitchen       |
|    |                       | Section 9.2;     | Addendum and its exhibits are binding (subject to applicable       |
|    |                       |                  | state law). No other representations or promises will be binding.  |
|    |                       |                  | (Remote Kitchen Addendum)                                          |
| u. | Dispute resolution by | Franchise        | You agree to attempt any dispute first by mediation, which will    |
|    | arbitration or        | Agreement        | occur in Los Angeles, California. Mediation must be completed      |
|    | mediation             | Sections 19.1    | within 45 days following the date either party first gives notice  |
|    |                       | and 19.2         | of mediation, unless otherwise agreed in writing. The fees and     |
|    |                       |                  | expenses of the mediator will be shared equally by you and us.     |
|    |                       |                  | If the parties cannot resolve and settle the dispute through       |
|    |                       |                  | mediations, all unresolved claims between you and us will be       |
|    |                       |                  | submitted to binding arbitration, which will occur in Los          |
|    |                       |                  | Angeles, California. The fees and expenses of the arbitrator will  |
|    |                       |                  | be shared equally by you and us.                                   |
|    |                       |                  | (subject to applicable state law)                                  |
| v. | Choice of forum       | Franchise        | All proceedings will be held in Los Angeles County, California,    |
|    |                       | Agreement        | subject to applicable state law. See the State Specific Addenda    |
|    |                       | Section 19.3     | (Exhibit H) attached to this Disclosure Document.                  |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 34

Is the choice of law for the Dog Haus franchise agreement subject to the Area Development Agreement?

Accepted Answer

| Provision                                                                             | Section In Area Development Agreement (Exhibit B) | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------------------------------------------------------------------------------|------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| n. Franchisor's right of first | Section 9.3 | We may match any offer to purchase your business. |
| refusal to acquire Area |  |  |
| Developer's business |  |  |
| o. Franchisor's option to purchase Area Developer's business                    | 9.1                                                        | We may sell our assets, the Dog Haus Marks or the Dog Haus System, may sell securities in a public offering or in a private placement, may merge, acquire other corporations, or be acquired by another corporation, and may undertake a refinancing, recapitalization, leveraged buy-out, or other economic or financial restructuring (each a "Capital Event") all without your consent or approval by you. Upon the occurrence of a Capital Event, we have the right to compel you to sell to us the assets of all your Dog Haus Restaurants, whether or not they are open or under construction.                                                                                                                                 |
| p. Death or disability of Area Developer                                           | Section 9.5                                                | Your spouse, heirs or personal representative has 180 days to purchase your interest or complete an assignment of your interest to a qualified, approved third party, subject to the transfer provisions.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| q. Non-competition covenants during the term of the franchise                   | Section 13.2                                               | You are prohibited from: (i) diverting any present or prospective Dog Haus customer to any competitor, or performing any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) owning or having any interest in a "Competitive Business" with Dog Haus Restaurants. A "Competitive Business" is defined as any restaurant business that prepares, offers and sells gourmet hot dogs, sausages, hamburgers, chicken, plant-based food products or any combination of these products as primary menu items and any business that looks like, copies, imitates, or operates with similar trade dress or décor to Dog Haus Restaurants. (subject to state law) |
| r. Non-competition covenants after the franchise is terminated or expires | Section 13.3                                               | For 2 years following the expiration or termination of your Area Development Agreement, you cannot own or have any interest in a competitive business within 2 miles of any location designated as a "Franchised Location" in a Franchise Agreement between you and us, or at any location within a 2 mile radius of any Dog Haus Restaurant or a Franchised Location. (subject to state law)                                                                                                                                                                                                                                                                                                                                                 |
| s. Modification of the Area Development Agreement                            | Section 18.5                                               | The Area Development Agreement can be modified or amended only by written agreement of all of the parties.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| t. Integration/merger clause                                                    | Section 18.5                                               | Only the terms of the Area Development Agreement and its exhibits are binding (subject to applicable state law). No other representations or promises will be binding. Any representations or promises outside of the Disclosure Document and Area Development Agreement may not be enforceable.                                                                                                                                                                                                                                                                                                                                                                                                                                                 |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 35

Does the Dog Haus choice of law provision have any exceptions?

Accepted Answer

|    |                       | Section In       |                                                                    |
|----|-----------------------|------------------|--------------------------------------------------------------------|
|    |                       | Franchise        |                                                                    |
|    |                       | Agreement        |                                                                    |
|    |                       | (Exhibit A) and  |                                                                    |
|    |                       | in Remote        |                                                                    |
|    |                       | Kitchen          |                                                                    |
|    |                       | Addendum         |                                                                    |
|    | Provision             | (Exhibit C)      | Summary                                                            |
| s. | Modification of the   | Franchise        | The Franchise Agreement can be modified or amended only by         |
|    | agreement             | Agreement        | written agreement of all of the parties. The Manuals are subject   |
|    |                       | Sections 6.5 and | to change at any time. You must comply with any changes set        |
|    |                       | 21.5; Remote     | forth in the Manuals. Remote Kitchen Addendum can be               |
|    |                       | Kitchen          | modified or amended only by written agreement of all the           |
|    |                       | Addendum         | parties. (Remote Kitchen Addendum)                                 |
|    |                       | Section 9.2      |                                                                    |
| t. | Integration/ merger   | Franchise        | Only the terms of the Franchise Agreement and other related        |
|    | clause                | Agreement        | written agreements are binding (subject to applicable state law).  |
|  |  | Section 21.5; | Any |
|  |  |  | representations or |
|  |  |  | promises |
|  |  |  | outside |
|  |  |  | the disclosure |
|    |                       | Remote Kitchen   | document and franchise agreement may not be enforceable.           |
|    |                       | Addendum         | Only the terms of the Franchise Agreement and Remote Kitchen       |
|    |                       | Section 9.2;     | Addendum and its exhibits are binding (subject to applicable       |
|    |                       |                  | state law). No other representations or promises will be binding.  |
|    |                       |                  | (Remote Kitchen Addendum)                                          |
| u. | Dispute resolution by | Franchise        | You agree to attempt any dispute first by mediation, which will    |
|    | arbitration or        | Agreement        | occur in Los Angeles, California. Mediation must be completed      |
|    | mediation             | Sections 19.1    | within 45 days following the date either party first gives notice  |
|    |                       | and 19.2         | of mediation, unless otherwise agreed in writing. The fees and     |
|    |                       |                  | expenses of the mediator will be shared equally by you and us.     |
|    |                       |                  | If the parties cannot resolve and settle the dispute through       |
|    |                       |                  | mediations, all unresolved claims between you and us will be       |
|    |                       |                  | submitted to binding arbitration, which will occur in Los          |
|    |                       |                  | Angeles, California. The fees and expenses of the arbitrator will  |
|    |                       |                  | be shared equally by you and us.                                   |
|    |                       |                  | (subject to applicable state law)                                  |
| v. | Choice of forum       | Franchise        | All proceedings will be held in Los Angeles County, California,    |
|    |                       | Agreement        | subject to applicable state law. See the State Specific Addenda    |
|    |                       | Section 19.3     | (Exhibit H) attached to this Disclosure Document.                  |
| w. | Choice of law         | Franchise        | California, subject to the exception provided in Section 19.3 of   |
|    |                       | Agreement        | the Franchise Agreement and applicable state law.                  |
|    |                       | Section 19.3     | See the State Specific Addenda (Exhibit H) attached to this        |
|    |                       |                  | Disclosure Document.                                               |
|    |                       |                  |                                                                    |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 36

What is the condition for Dog Haus to collect transfer fees from a franchisee in Washington?

Accepted Answer

rs, who shall have the authority to act on behalf of Area Developer during the Term without the participation of any other Owner, and wh

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 37

What are the conditions that a Dog Haus franchisee must meet to renew the Franchise Agreement and Addendum?

Accepted Answer

- 3.2 **Conditions to Renewal**.

If Franchisee desires to renew the term of the Franchise Agreement and this Addendum, the Remote Kitchen Landlord must waive any rights it may have to terminate the Remote Kitchen Agreement upon the expiration of the term then in effect.

In addition, Franchisee must (i) be in Good Standing under the Franchise Agreement, this Addendum and the Remote Kitchen Agreement and any other agreements between Franchisee and Franchisor or its Affiliates; (ii) execute a General Release in favor of Franchisor and its Affiliates; (iii) pay Franchisor a renewal fee for each renewal term in the amount set forth on **Exhibit A**; and (iv) execute Franchisor's Then-Current Rider to be attached to this Addendum setting forth the commencement date and expiration date of each renewal term and other provisions that may not be present in the Franchise Agreement or this Addendum.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 38

What conditions must a Dog Haus franchisee meet to renew the term of the Franchise Agreement and Addendum?

Accepted Answer

- 3.2 **Conditions to Renewal**.

If Franchisee desires to renew the term of the Franchise Agreement and this Addendum, the Remote Kitchen Landlord must waive any rights it may have to terminate the Remote Kitchen Agreement upon the expiration of the term then in effect.

In addition, Franchisee must (i) be in Good Standing under the Franchise Agreement, this Addendum and the Remote Kitchen Agreement and any other agreements between Franchisee and Franchisor or its Affiliates; (ii) execute a General Release in favor of Franchisor and its Affiliates; (iii) pay Franchisor a renewal fee for each renewal term in the amount set forth on **Exhibit A**; and (iv) execute Franchisor's Then-Current Rider to be attached to this Addendum setting forth the commencement date and expiration date of each renewal term and other provisions that may not be present in the Franchise Agreement or this Addendum.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 39

What is the consequence if the information provided in the Entity Information Disclosure for a Dog Haus franchise is not true, accurate, and complete?

Accepted Answer

If Dog Haus Worldwide, LLC does not deliver this Disclosure Document on time or if it contains a false or misleading statement or a material omission, a violation of federal and state law may have occurred and should be reported to The Federal Trade Commission, Washington D.C. 20580 and the appropriate State Agency Identified on **Exhibit J**.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 40

In the Dog Haus Development Agreement, what happens if mediation does not resolve the dispute?

Accepted Answer

| Provision          | (Exhibit B)                                 | Summary                                                                                                                                                                                                                                                                                                                                                                                                   |
|--------------------|---------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | expenses of the mediator will be shared equally by you and us. |
|  |  | If the parties cannot resolve and settle the dispute through |
|  |  | mediations, all unresolved claims between you and us will be |
|  |  | submitted to binding arbitration, which will occur in Los Angeles, |
|  |  | California. The fees and expenses of the arbitrator will be shared |
|  |  | equally by you and us. |
|  |  | (subject to applicable state law) |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 41

In a Dog Haus dispute, what happens if the parties cannot fully resolve and settle a dispute through mediation?

Accepted Answer

Except as set forth in Sections 15.2.5 and 15.5, the Parties pledge to attempt first to resolve any dispute pursuant to mediation. Within fifteen (15) days after either Party first gives notice of mediation, the Parties shall promptly agree on a mediator, whose qualifications must include at least ten (10) years of experience in franchise law. Mediation shall take place in Los Angeles, California and be conducted in accordance with the Commercial Mediation Rules of the American Arbitration Association ("AAA") unless Franchisor and Area Developer agree on alternative rules or to proceed on a virtual platform. Mediation shall be completed within fortyfive (45) days following the date either Party first gives notice of mediation unless otherwise agreed to in writing by Franchisor and Area Developer. The fees and expenses of the mediator shall be shared equally by Franchisor and Area Developer. The mediator shall be disqualified as a witness, expert or counsel for any Party with respect to the dispute and any related matter. Mediation is a compromise negotiation and shall constitute privileged communications under California and other Applicable Laws. The entire mediation process shall be confidential and the conduct, statements, promises, offers, views and opinions of the mediator and Franchisor and Area Developer shall not be discoverable or admissible in any legal proceeding for any purpose; provided, however, that evidence which is otherwise discoverable or admissible shall not be excluded from discovery or admission as a result of its use in the mediation. Notwithstanding anything to the contrary set forth in this Agreement, any Party that fails to reasonably cooperate in scheduling and completing a mediation within forty-five (45) days after giving or receiving notice thereof shall be precluded from recovering costs, expenses, and/or prevailing party attorneys' fees in any subsequent legal action. - 15.2 Arbitration. Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 42

In the event of a conflict between the Dog Haus Franchise Agreement and the Remote Kitchen Addendum, which document's provisions will control?

Accepted Answer

- 9.4 **Conflict With Franchise Agreement**. Where and to the extent that any provisions of this Addendum are contrary to, in conflict with or inconsistent with any provision contained in the Franchise Agreement, the provisions contained in this Addendum shall control with respect to the Remote Kitchen. However, Franchisor and Franchisee agree that they shall work in good faith to resolve any disputes arising as a result of any provision of this Addendum that is contrary to, in conflict with or inconsistent with any provision contained in the Franchise Agreement. Should a dispute arise as to the application or intent of the Franchise Agreement as it pertains to this Addendum, the Parties shall resolve the dispute in accordance with Article 19 of the Franchise Agreement.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 43

In the event of a conflict between the Dog Haus Franchise Agreement and the Rhode Island Addendum, which document's terms prevail?

Accepted Answer

| the identical meanings in this Addendum.                                | THIS ADDENDUM TO FRANCHISE AGREEMENT (this "Addendum") dated, is intended to be a part of, and by this reference is incorporated into that certain Franchise Agreement (the "Franchise Agreement") dated, by and between DOG HAUS WORLDWIDE, LLC, a California limited liability company, as franchisor ("Franchisor") and, as franchisee ("Franchisee"). Where and to the extent that any of the provisions of this Addendum are contrary to, in conflict with or inconsistent with any provision contained in the Franchise Agreement, the provisions contained in this Addendum shall control. Defined terms contained in the Franchise Agreement shall have |
|-------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 14), the parties to the Franchise Agreement agree as follows: | In recognition of the requirements of the Rhode Island Franchise Investment Act (Section 19-28.1- |
| 1. | Any provision of the Franchise Agreement restricting jurisdiction or venue to a forum outside Rhode Island or requiring the application of the laws of any state other than Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. |
| 2. | In the event of any conflict between the terms of this Addendum and the terms of the Franchise |
| Agreement, the terms of this Addendum shall prevail. |  |

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 44

Are the Dog Haus financial statements consolidated or individual?

Accepted Answer

We have audited the financial statements of Dog Haus Worldwide, LLC (the Company), which comprise the balance sheets as of December 31, 2024 and 2023, and the related statements of operations and members' deficit, and cash flows for the years ended December 31, 2024, 2023 and 2022, and the related notes to the financial statements.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the years ended December 31, 2024, 2023 and 2022 in accordance with accounting principles generally accepted in the United States of America.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)

Question 45

Are the Dog Haus financial statements prepared according to generally accepted accounting principles (GAAP)?

Accepted Answer

The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP). The financial statements are presented on the accrual basis of accounting.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 87)

Question 46

Does the Dog Haus Franchise Agreement address renewal, termination, transfer, and dispute resolution specifically for Remote Kitchens?

Accepted Answer

the Franchise Agreement; engaging |
|  |  | in fraudulent, dishonest, unethical, immoral or similar |
|  |  | conduct in connection with your operation of the Franchised |
|  |  | Restaurant; and engaging in any lewd or immoral conduct |
|  |  | whether or not in connection with your operation of the |
|  |  | Franchised Restaurant (subject to state law). |

![](_page_65_Picture_0.jpeg)

|    |                         | Section In      |                                                                                                                               |
|----|-------------------------|-----------------|-------------------------------------------------------------------------------------------------------------------------------|
|    |                         | Franchise       |                                                                                                                               |
|    |                         | Agreement       |                                                                                                                               |
|    |                         | (Exhibit A) and |                                                                                                                               |
|    |                         | in Remote       |                                                                                                                               |
|    |                         | Kitchen         |                                                                                                                               |
|    |                         | Addendum        |                                                                                                                               |
|    | Provision               | (Exhibit C)     | Summary                                                                                                                       |
|  |  |  | Non-curable defaults pursuant to Article 16 of your Franchise |
|  |  |  | Agreement (subject to state law). (Remote Kitchen Addendum). |
| i. | Franchisee's | Franchise | You must cease use of our |
|  |  |  | trademarks, de-identify the |
|    | obligations on          | Agreement       | Franchised Restaurant, pay all amounts due to us, and return the                                                              |
|    | termination/            | Sections 17.1 - | Manuals. We may, at our option, assume all telephone numbers                                                                  |
|    | nonrenewal              | 17.4, 17.7 and  | for the Franchised Restaurant. You must, at our option, cancel or                                                             |
|    |                         | 17.8; Remote    | assign to us your rights to any Internet websites or web pages or                                                             |
|    |                         | Kitchen         | e-mail addresses or assumed, fictitious or corporate names that                                                               |
|    |                         | Addendum        | contain the Dog Haus Marks. See also "r" below.                                                                               |
|    |                         | Section 8.1     |                                                                                                                               |
|    |                         |                 | Post-termination obligations pursuant to Article 17 of your                                                                   |
|    |                         |                 | Franchise Agreement. (Remote Kitchen Addendum)                                                                                |
| j. | Assignment of           | Franchise       | No restriction on our right to assign.                                                                                        |
|    | contract by Franchisor  | Agreement       |                                                                                                                               |
|    |                         | Section 14.1    |                                                                                                                               |
| k. | "Transfer" by           | Franchise       | Includes transfer of the Franchise Agreement or change in                                                                     |
|    | Franchisee - definition | Agreement       | ownership of the business entity that owns it.                                                                                |
|    |                         | Section 14.2;   |                                                                                                                               |
|    |                         | Remote Kitchen  |                                                                                                                               |
|    |                         | Addendum        |                                                                                                                               |
|    |                         | Article 7       |                                                                                                                               |
| l. | Franchisor's approval   | Franchise       | Transfers require our prior written consent, which will not be                                                                |
|    | of transfer by          | Agreement       | unreasonably withheld.                                                                                                        |
|    | Franchisee              | Section 14.2;   |                                                                                                                               |
|    |                         | Remote Kitchen  |                                                                                                                               |
|    |                         | Addendum        |                                                                                                                               |
|    |                         | Article 7       |                                                                                                                               |
| m. | Conditions for          | Franchise       | The proposed transferee must qualify, successfully complete our                                                               |
|    | Franchisor's approval   | Agreement       | initial training program, sign our then-current Franchise                                                                     |
|    | of transfer             | Sections 14.2   | Agreement (provided, that the term of the new Franchise                                                                       |
|    |                         | and 14.4;       | Agreement will be the remaining term of the existing Franchise                                                                |
|    |                         | Remote Kitchen  | Agreement), provide us with a guarantee signed by all equity                                                                  |
|    |                         | Addendum        | owners of the proposed franchisee and their spouses (if the                                                                   |
|    |                         | Article 7       | proposed franchisee is an entity), the proposed transferee must                                                               |
|    |                         |                 |                                                                                                                               |
|    |                         |                 | conform the Franchised Restaurant with our then current                                                                       |
|    |                         |                 | appearance and design standard and equipment specifications                                                                   |
|    |                         |                 | applicable to new Dog Haus Restaurants, and you must be in                                                                    |
|    |                         |                 | good standing, sign a general release, sign a guarantee of the                                                                |
|    |                         |                 | transferee's obligations under the new Franchise Agreement in                                                                 |
|    |                         |                 | our favor, pay the transfer fee and the proposed transferee must                                                              |
|    |                         |                 | conduct a promotional campaign and spend the then-current                                                                     |
|    |                         |                 | required transfer marketing expenditure. See also "r" below. If                                                               |
|    |                         |                 | the Franchise Agreement has been signed under an Area                                                                         |

![](_page_66_Picture_0.jpeg)

|  | Provision | Addendum | Summary |
|----|---------------------------------------------------------------------------------|------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | (Exhibit C) | Development Agreement, except as described below, you must concurrently assign all other existing Franchise Agreements to the same assignee. Transfer restrictions pursuant to Article 14 of the Franchise Agreement. (Remote Kitchen Addendum) |
| n. | Franchisor's right of first refusal to acquire Franchisee's business | Franchise Agreement Section 14.3; Remote Kitchen Addendum Article 7 | We can match any offer for your business. Transfer restrictions pursuant to Article 14 of the Franchise Agreement. (Remote Kitchen Addendum) |
| o. | Franchisor's option to purchase Franchisee's business | Franchise Agreement Section 17.5 | When your Franchise Agreement expires or is terminated, we have the option to purchase some or all of the assets of the Franchised Restaurant and some or all of your assets related to the Franchised Restaurant. |
| p. | Death or disability of Franchisee | Franchise Agreement Section 14.5 | Your spouse, heirs or personal representative has 180 days to purchase your interest or complete an assignment of your interest to a qualified, approved third party, subject to the transfer provisions. |
| q. | Non-competition covenants during the term of the franchise | Franchise Agreement Section 15.2 | You are prohibited from: (i) diverting any present or prospective Dog Haus customer to any competitor, or performing any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) owning or having any interest in a "Competitive Business" with Dog Haus Restaurants. A "Competitive Business" is defined as any restaurant business that prepares, offers and sells gourmet hot hamburgers, chicken, plant-based food dogs, sausages, products or any combination of these products as primary menu items and any business that looks like, copies, imitates, or operates with similar trade dress or décor to Dog Haus Restaurants. (subject to state law) |
| r. | Non-competition covenants after the franchise is terminated or expires | Franchise Agreement Section 15.3 | For 2 years following the expiration or termination of your Franchise Agreement, you cannot own or have any interest in a competitive business within 2 miles of the Franchised Location or any other Franchised Restaurant. If you violate the post-term covenant not to compete, you must pay us, throughout the 2 year period following the termination, transfer, or expiration of your Franchise Agreement, 6% of the gross revenue of any business that provides similar services or products. (subject to state law) |
![](_page_67_Picture_0.jpeg)

|    |                       | Section In       |                                                                    |
|----|-----------------------|------------------|--------------------------------------------------------------------|
|    |                       | Franchise        |                                                                    |
|    |                       | Agreement        |                                                                    |
|    |                       | (Exhibit A) and  |                                                                    |
|    |                       | in Remote        |                                                                    |
|    |                       | Kitchen          |                                                                    |
|    |                       | Addendum         |                                                                    |
|    | Provision             | (Exhibit C)      | Summary                                                            |
| s. | Modification of the   | Franchise        | The Franchise Agreement can be modified or amended only by         |
|    | agreement             | Agreement        | written agreement of all of the parties. The Manuals are subject   |
|    |                       | Sections 6.5 and | to change at any time. You must comply with any changes set        |
|    |                       | 21.5; Remote     | forth in the Manuals. Remote Kitchen Addendum can be               |
|    |                       | Kitchen          | modified or amended only by written agreement of all the           |
|    |                       | Addendum         | parties. (Remote Kitchen Addendum)                                 |
|    |                       | Section 9.2      |                                                                    |
| t. | Integration/ merger   | Franchise        | Only the terms of the Franchise Agreement and other related        |
|    | clause                | Agreement        | written agreements are binding (subject to applicable state law).  |
|  |  | Section 21.5; | Any |
|  |  |  | representations or |
|  |  |  | promises |
|  |  |  | outside |
|  |  |  | the disclosure |
|    |                       | Remote Kitchen   | document and franchise agreement may not be enforceable.           |
|    |                       | Addendum         | Only the terms of the Franchise Agreement and Remote Kitchen       |
|    |                       | Section 9.2;

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 47

After the Dog Haus franchise agreement expires or is terminated, under what circumstances can the non-competition restrictions be waived?

Accepted Answer

Except as Franchisor otherwise approves in writing, commencing upon the date of (i) an Assignment permitted under Article 14, (ii) the Expiration Date of this Agreement, (iii) the termination of this Agreement (regardless of the cause for

![](_page_135_Picture_0.jpeg)

termination), or (iv) a final court order (after all appeals have been taken): with respect to any of the foregoing events or with respect to enforcement of this Section 15.3, and continuing for an uninterrupted period of two (2) years thereafter, Franchisee and each Owner shall not, own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business located at the Franchised Location or within two (2) miles of the Franchised Location or any other Dog Haus Restaurants; provided, however, the restrictions stated in this Section 15.3 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Franchisee.

- 15.4 **Violation of Covenants**.

If Franchisee or any Restricted Person shall commit any violation of Section 15.3 during the two (2) year period following (i) the expiration or termination of this Agreement; (ii) the occurrence of any Assignment during the Term; (iii) the cession of the Restricted Person's relationship with Franchisee; or (iv) a final court order (after all appeals have been taken) with respect to any of the foregoing events or with respect to enforcement of Section 15.3, in addition to all other remedies available to Franchisor, Franchisee or the Restricted Person shall pay Franchisor, throughout the twenty-four (24) month period, five percent (5%) of the revenue derived by Franchisee from the sale of all products and services and all other income of every kind and nature ("**Post Termination Gross Sales**") of the Competitive Business.

Source: Item 22 — CONTRACTS (FDD page 87)

Question 48

For a Dog Haus franchise, when are the initial fees and payments due if the franchisee is in Maryland?

Accepted Answer

Section 4.1 of the Franchise Agreement is amended to include the following: "Despite the payment provisions in this Section 4.1, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement and you begin to conduct business at the franchised location, at which time all initial fees and payments will become immediately due and payable."

- 5.

In the event of any conflict between the terms of this Addendum and the terms of the Franchise Agreement, the terms of this Addendum shall prevail.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 49

For a Dog Haus franchise in Maryland, when are all initial fees and payments due to the franchisor?

Accepted Answer

7. Item 5 of the Franchise Disclosure Document is amended as follows:

"Despite the payment provisions in this Item 5, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement and you begin to conduct business at the franchised location, at which time all initial fees and payments will become immediately due and payable."

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 50

For a Dog Haus franchise in Maryland, when are all initial fees and payments due to the franchisor, according to the amendment to Section 4.1 of the Franchise Agreement?

Accepted Answer

Section 4.1 of the Franchise Agreement is amended to include the following: "Despite the payment provisions in this Section 4.1, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement and you begin to conduct business at the franchised location, at which time all initial fees and payments will become immediately due and payable."

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 51

For a Dog Haus franchise in North Dakota, when are the initial fees and payments due?

Accepted Answer

Item 5 of the Franchise Disclosure Document is amended as follows:

"Despite the payment provisions in this Item 5, all initial fees and payments due to us will be deferred until the first business day following the date that we have completed all of our material initial obligations to you under the Franchise Agreement and you begin to conduct business at the Franchised Restaurant, at which time all initial fees and payments will become immediately due and payable."

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 52

Is a Dog Haus franchisee allowed to engage in co-branding, and if so, what conditions apply?

Accepted Answer

- 7.20 **Co-Branding**. Franchisee may not engage in any co-branding in or in connection with the Franchised Restaurant except with Franchisor's prior written consent. Franchisor may approve any co-branding chain or arrangement in its discretion, and only if Franchisor has recognized that co-branding chain as an approved cobrand for operation within Dog Haus Restaurants.

Source: Item 22 — CONTRACTS (FDD page 87)

Question 53

What must a Dog Haus franchisee do if there is a conflict between the Franchisor's privacy standards and applicable law?

Accepted Answer

Franchisee shall comply with all Applicable Laws pertaining to the privacy of customer, employee and transactional information ("**Privacy Laws**").

Franchisee shall also comply with Franchisor's standards and policies pertaining to Privacy Laws.

If there is a conflict between Franchisor's standards and policies pertaining to Privacy Laws and actual Applicable Law, Franchisee shall (i) comply with the requirements of Applicable Law; (ii) immediately give Franchisor written notice of the conflict; and (iii) promptly and fully

![](_page_118_Picture_0.jpeg)

cooperate with Franchisor and Franchisor's counsel in determining the most effective way, if any, to meet Franchisor's standards and policies pertaining to Privacy Laws within the bounds of Applicable Law. Franchisee shall not publish, disseminate, implement, revise, or rescind a data privacy policy without Franchisor's prior written consent to such policy.

Source: Item 22 — CONTRACTS (FDD page 87)

Question 54

Can a Dog Haus franchisee or owner engage in a Competitive Business during the term of the agreement if approved by the franchisor?

Accepted Answer

- 15.2 **Non-Competition During Term of Agreement**.

Franchisee and each Owner covenants that during the Term, except as otherwise approved in writing by Franchisor, Franchisee and each Owner shall not, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, or legal Entity: (i) divert or attempt to divert any present or prospective Dog Haus customer to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Dog Haus Marks and the Dog Haus System; or (ii) own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business, provided, however, the restrictions stated in this Section 15.2 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Franchisee.

Source: Item 22 — CONTRACTS (FDD page 87)

Question 55

Must a Dog Haus franchisee participate in promotional campaigns established for the region in which their Franchised Restaurant is located?

Accepted Answer

of operations following the take-over date of the in accordance with our then-current transfer marketing requirements. You must also participate in all promotional events we may establish, as specified in the Manuals. (**Franchise Agreement, Sections 10.4 and 14.4.10**).

### **Promotional Campaigns**

We may conduct promotional campaigns on a national or regional basis to promote products or marketing themes. You must participate in all promotional campaigns which we may establish for the region in which your Franchised Restaurant is located. (**Franchise Agreement, Section 10.5**).

### **Sub-Branded Products**

If your Franchised Restaurant offers the Sub-Branded Products, you must spend at least \$5,000 marketing each new Sub-Branded Product your Franchised Re

Source: Item 11 — FRANCHISOR'S ASSISTANCE, MARKETING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 38–53)

Question 56

When does a Dog Haus franchisee pay the 'Additional Post-Opening Initial Training Fee'?

Accepted Answer

absolute discretion, Franchisor may terminate this Agreement upon five (5) days' written notice to Franchisee and this Agreement shall thereafter be of no further force or effect. Franchisor shall have the right to retain the Initial Franchise Fee. Franchisor and Franchisee acknowledge and agree that the actual damages to be suffered by Franchisor in this circumstance are difficult, if not impossible, to determine, and that, under all the facts and circumstances, this calculation of Franchisor's potential damages and retention of the Initial Franchise Fee by Franchisor, are a reasonable, good-faith estimate of those damages.
- 7.3 **Additional Post-Opening Initial Training Programs**. If, following the Opening Date of the Franchised Restaurant, Franchisee requests Franchisor to provide additional Initial Training Programs for new or replacement supervisorial or managerial personnel and Franchisor agrees to do so, Franchisee shall pa

Source: Item 22 — CONTRACTS (FDD page 87)

Question 57

Is a Dog Haus franchisee's compliance with the franchise agreement a factor when determining if a failure to operate due to Force Majeure is considered 'Abandon'?

Accepted Answer

- "**Abandon**" means (i) Franchisee's failure, at any time during the Term, to keep the Franchised Restaurant open and operating for business for a period of five (5) consecutive days, except as provided in the Manuals; (ii) Franchisee's failure to keep the Franchised Restaurant open and operating for any period after which it is not unreasonable under the facts and circumstances for Franchisor to conclude that Franchisee does not intend to continue to operate the Franchised Restaurant, unless the failure to operate is due to Force Majeure (subject to Franchisee's continuing compliance with this Agreement); (iii) the withdrawal of permission from the Landlord that results in Franchisee's inability to continue operation of the Franchised Restaurant at the Franchised Location; or (v) a closure of the Franchised Restaurant required by Applicable Law.

Source: Item 22 — CONTRACTS (FDD page 87)

Question 58

Will the Franchisor have liability to the Area Developer for exercising discretion under the covenant of good faith for Dog Haus, if the discretion is not exercised in bad faith?

Accepted Answer

Additionally, if Applicable Law shall imply the covenant, Area Developer agrees that: (i) this Agreement (and the relationship of the Parties that is inherent in this Agreement) grants Franchisor the discretion to make decisions, take actions and/or refrain from taking actions not inconsistent with Franchisor's explicit rights and obligations under this Agreement that may affect favorably or adversely Area Developer's interests; (ii) Franchisor will use its judgment in exercising the discretion based on Franchisor's assessment of its own interests and balancing those interests against the interests of the Dog Haus Area Developers generally (including Franchisor and its Affiliates if applicable), and specifically without considering Area Developer's individual interests or the individual interests of any other particular Dog Haus Area Developer; (iii) Franchisor will have no liability to Area Developer for the exercise of Franchisor's discretion in this manner, so long as the discretion is not exercised in bad faith; and (iv) in the absence of bad faith, no trier of fact in any arbitration or litigation shall substitute its judgment for Franchisor's judgment so exercised.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 59

Can the Dog Haus Franchisor vary the length and content of the Pre-Opening Initial Training Program?

Accepted Answer

In Franchisor's discretion, Franchisor may vary the length and content of the Pre-Opening Initial Training Program based on the experience and skill level for each individual attending the Pre-Opening Initial Training Program.

Source: Item 22 — CONTRACTS (FDD page 87)

Question 60

Can the Dog Haus Franchisor waive the non-competition restrictions for the Area Developer after the agreement expires or is terminated?

Accepted Answer

Except as Franchisor otherwise approves in writing, commencing upon the date of: (i) an Assignment permitted under Article 9; (ii) the Expiration Date of this Agreement; (iii) the termination of this Agreement (regardless of the cause for termination); or (iv) a final court order (after all appeals have been taken) with respect to any of the foregoing events or with respect to enforcement of this Section 13.3, and continuing for an uninterrupted period of two (2) years thereafter, Area Developer and each Owner shall not, own (either beneficially or of record), engage in or render services to, whether as an investor, partner, lender, director, officer, manager, employee, consultant, representative or agent, any Competitive Business located at a location designated as a "Franchised Location" in a Franchise Agreement between Franchisor, as franchisor, and Area Developer, or an Affiliate or Owner of Area Developer, as franchisee, except in accordance with the terms of an effective Franchise Agreement between Franchisor, as franchisor, and Area Developer, or an Affiliate or Owner of Area Developer, as franchisee, or any location within a two (2) mile radius of any Dog Haus Restaurant or a Franchised Location as defined above; provided, however, the restrictions stated in this Section 13.3 shall not apply to any Owner after two (2) years from the date the Owner ceases to be an officer, director, shareholder, member, manager, trustee, owner, general partner, employee or otherwise associated in any capacity with Area Developer in the Development Area.

- 13.4 Exceptions to Non-Compete Covenants.

Sections 13.2 and 13.3 shall not apply to ownership by Area Developer or an Owner of a less than five percent (5%) beneficial interest in the outstanding equity securities of any Competitive Business registered under the Securities Act of 1833 or the Securities Exchange Act of 1834.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 61

What happens if a Dog Haus Area Developer defaults on a Franchise Agreement?

Accepted Answer

|    |                         | Section In      |                                                                                                                               |
|----|-------------------------|-----------------|-------------------------------------------------------------------------------------------------------------------------------|
|    |                         | Franchise       |                                                                                                                               |
|    |                         | Agreement       |                                                                                                                               |
|    |                         | (Exhibit A) and |                                                                                                                               |
|    |                         | in Remote       |                                                                                                                               |
|    |                         | Kitchen         |                                                                                                                               |
|    |                         | Addendum        |                                                                                                                               |
|    | Provision               | (Exhibit C)     | Summary                                                                                                                       |
|  |  |  | Non-curable defaults pursuant to Article 16 of your Franchise |
|  |  |  | Agreement (subject to state law). (Remote Kitchen Addendum). |
| i. | Franchisee's | Franchise | You must cease use of our |
|  |  |  | trademarks, de-identify the |
|    | obligations on          | Agreement       | Franchised Restaurant, pay all amounts due to us, and return the                                                              |
|    | termination/            | Sections 17.1 - | Manuals. We may, at our option, assume all telephone numbers                                                                  |
|    | nonrenewal              | 17.4, 17.7 and  | for the Franchised Restaurant. You must, at our option, cancel or                                                             |
|    |                         | 17.8; Remote    | assign to us your rights to any Internet websites or web pages or                                                             |
|    |                         | Kitchen         | e-mail addresses or assumed, fictitious or corporate names that                                                               |
|    |                         | Addendum        | contain the Dog Haus Marks. See also "r" below.                                                                               |
|    |                         | Section 8.1     |                                                                                                                               |
|    |                         |                 | Post-termination obligations pursuant to Article 17 of your                                                                   |
|    |                         |                 | Franchise Agreement. (Remote Kitchen Addendum)

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 63–72)

Question 62

What happens if the Dog Haus Area Developer defaults on any provision of the agreement during a Capital Event?

Accepted Answer

In connection with any of the foregoing, at Franchisor's request, Area Developer shall deliver to Franchisor a statement in writing certifying (a) that this Agreement is unmodified and in full force and effect (or if there have been modifications that the Agreement as modified is in full force and effect and identifying the modifications); (b) that Area Developer is not in default under any provision of this Agreement, or if in default, describing the nature thereof in detail; and (c) as to such other matters as Franchisor may reasonably request; and Area Developer agrees that any such statements may be relied upon by Franchisor and any prospective purchaser, assignee or lender of Franchisor.

- 9.1.2 Upon the occurrence of a Capital Event, Franchisor shall have the right (the "Take-Along Right") to compel Area Developer to sell and, in such event, Area Developer shall sell the assets of any or all of the Dog Haus Restaurants, regardless of whether such Dog Haus Restaurants are under construction or are Open and operating (collectively the "Take-Along Assets") at the same value attributable to Dog Haus Restaurants owned and operated by Franchisor or its Affiliates at the closing of a Capital Event.

Franchisor shall exercise this Take-Along Right to compel the sale of the Take-Along Assets by Area Developer by providing Area Developer with written notice (the "Take-Along Notice") setting forth the time and place of the closing of the Capital Event, which time and place shall not be less than thirty (30) days after the date of the Take-Along Notice, and the expected price and form of consideration to be paid for the Take-Along Assets at the closing.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 63

What happens if the Area Developer fails to open the aggregate number of Dog Haus Restaurants required by the Minimum Development Obligation in compliance with the Development Schedule?

Accepted Answer

Area Developer shall satisfy the Minimum Development Obligation by Opening the number of Dog Haus Restaurants in the Development Area within each Development Period as required by the Development Schedule set forth on Exhibit A and by continuing to operate the cumulative number of Dog Haus Restaurants required by the Minimum Development Obligation. Failure to comply with the Development Schedule shall constitute a Default under this Agreement and shall entitle Franchisor to terminate this Agreement, unless the Default results from an event of Force Majeure, in which case, the deadline to Opening a Dog Haus Restaurant may be extended by Franchisor as provided in Section 2.7. Source: Item 23 — RECEIPTS (FDD pages 87–328)

Question 64

What happens if the Dog Haus Area Developer fails to provide the requested statement during a Capital Event?

Accepted Answer

In connection with any of the foregoing, at Franchisor's request, Area Developer shall deliver to Franchisor a statement in writing certifying (a) that this Agreement is unmodified and in full force and effect (or if there have been modifications that the Agreement as modified is in full force and effect and identifying the modifications); (b) that Area Developer is not in default under any provision of this Agreement, or if in default, describing the nature thereof in detail; and (c) as to such other matters as Franchisor may reasonably request; and Area Developer agrees that any such statements may be relied upon by Franchisor and any prospective purchaser, assignee or lender of Franchisor.

Source: Item 23 — RECEIPTS (FDD pages 87–328)

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