What must accompany the weekly Royalty Fee payment for a Dog Haus franchise?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall pay Franchisor a weekly Royalty Fee in the manner provided in Section 4.6 without deduction, abatement or offset. The Royalty Fee shall be paid on Tuesday of each week on the Gross Sales of the Franchised Restaurant during the preceding week. Each payment shall be accompanied by a statement of Gross Sales for the preceding calendar week, certified as complete and accurate by the Principal Owner.
Source: Item 22 — CONTRACTS (FDD page 87)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the weekly Royalty Fee payment must be accompanied by a statement of Gross Sales for the preceding calendar week. This statement must be certified as complete and accurate by the Principal Owner of the franchise. The Royalty Fee is due each Tuesday.
This requirement ensures that Dog Haus receives an accurate accounting of each franchise's sales, which is essential for calculating the Royalty Fee. The certification by the Principal Owner adds an element of accountability, confirming the accuracy of the reported Gross Sales.
For a prospective Dog Haus franchisee, this means maintaining meticulous sales records and preparing a weekly Gross Sales statement. The Principal Owner must personally verify the accuracy of this statement before submission with the Royalty Fee payment. Failure to provide an accurate statement could lead to audits or other compliance issues with Dog Haus.
This is a fairly standard practice in franchising, where royalty fees are typically calculated as a percentage of gross sales. Franchisors rely on franchisees to accurately report their sales figures, and the certification requirement is a common method for ensuring compliance.