Can Dog Haus adjust the amount of the Marketing, Creative & Technology Fee?
Dog_Haus Franchise · 2025 FDDAnswer from 2025 FDD Document
nd on local marketing. We may adjust the amount of the Marketing, Creative & |
| Name Of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Technology Fee upon 90 days' prior written notice, not to exceed 3.5% of Gross Sales. | |||
| Marketing, Creative & Technology Fee (Remote Kitchen) (Remote Kitchen Addendum) | Currently, 0.5% of Gross Sales | Same as Royalty Fee. | If you are a Remote Kitchen franchisee, the Marketing, Creative & Technology Fee that you pay the Marketing, Creative & Technology Fund is in addition to the 5% of Gross Sales or $6,000 per calendar quarter, whichever is greater, that we may require you to spend on local marketing. We may adjust the amount of the Marketing, Creative & Technology Fee upon 90 days' prior written notice, not to exceed 2.5% of Gross Sales. |
| Local Marketing Expenditure | We do not currently require a Local Marketing Expenditure. If and when we do so, you must spend 1% of Gross Sales or $3,750 per calendar quarter, whichever is greater, to market your Dog Haus Restaurant. | Each quarter. | We may elect to require a Local Marketing Expenditure in the future on 90 days' prior notice. This amount is not paid to us. The Local Marketing Expenditure will be in addition to the Marketing, Creative & Technology Fee. If you fail to spend 1% of Gross Sales or $3,750 per calendar quarter, whichever is greater, on local marketing, on the last day of each calendar quarter, you must pay the Marketing, Creative & Technology Fund the difference between the amount that you actually spent and the greater of 1% of your Gross Sales or $3,750 per calendar quarter. We may adjust the amount of the Local Store Marketing Expenditure upon 90 days' prior written notice, not to exceed 3% of Gross Sales. |
| Cooperative Marketing Fees | As determined by us and 50% or more of the participating Dog Haus Restaurants in the Cooperative Marketing Program, at least .5% of Gross Sales but not to exceed 2% of Gross Sales. | As we designate. | You must contribute to the Cooperative if we establish a Cooperative Marketing Program in the Marketing Coverage Area where your Franchised Restaurant is located. Your contributions will be credited against your local marketing expenditures. |
| Remote Kitchen Local Marketing Expenditure (Remote Kitchen | We do not currently require a Remote Kitchen Local | Each quarter. | We may |
Source: Item 6 — OTHER FEES 1 (FDD pages 15–22)
What This Means (2025 FDD)
According to Dog Haus's 2025 Franchise Disclosure Document, the franchisor has the ability to adjust the Marketing, Creative & Technology Fee under certain conditions, with 90 days' prior written notice. For Dog Haus Fast Casual and Biergarten restaurants, the current Marketing, Creative & Technology Fee is 2% of Gross Sales, which is paid in addition to any local marketing expenditure requirements. For Remote Kitchen franchisees, the current Marketing, Creative & Technology Fee is 0.5% of Gross Sales, also in addition to local marketing expenditure requirements.
For Dog Haus Fast Casual and Biergarten locations, there is no stated maximum percentage of Gross Sales that the Marketing, Creative, & Technology Fee can be adjusted to. For Remote Kitchen locations, the fee may be adjusted, but cannot exceed 2.5% of Gross Sales.
Prospective franchisees should be aware that these adjustments can impact their overall costs and profitability. It is important to factor in potential increases to this fee when evaluating the financial feasibility of a Dog Haus franchise. Franchisees should also inquire about the specific circumstances under which Dog Haus might adjust this fee and how it is determined.