How did Dog Haus account for advertising costs in the financial years 2022, 2023, and 2024?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise agreements. Management considers the following factors when determining the collectability of specific franchisees' accounts: the age of the balances, the Company's historical bad debt experience, franchisees' creditworthiness, and changes i
Source: Item 23 — RECEIPTS (FDD pages 87–328)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, advertising costs are expensed during the period they are incurred or over the life of the contract, if applicable. This means that Dog Haus recognizes advertising expenses as they are used or as the benefit from the advertising is received.
For the financial years ending December 31, 2024, 2023, and 2022, Dog Haus reported advertising costs of $1,470,843, $1,487,295, and $1,554,304, respectively. These figures represent the total advertising expenses recognized by Dog Haus for those years, reflecting the costs associated with promoting the brand and its restaurants.
As a prospective franchisee, it is important to understand how advertising expenses are managed, as these costs can impact the overall profitability of the franchise. The consistent advertising spend over these three years suggests a commitment to marketing the Dog Haus brand. Franchisees typically contribute to marketing funds, so understanding how these funds are used and accounted for is crucial for assessing the value and effectiveness of the franchisor's marketing efforts.